Atvos ensures operations and investments in court-supervised reorganization plan

On July 6, Atvos filed its court-supervised reorganization plan at the courts of the State of São Paulo. The proposed plan strengthens the company’s capital structure and enables investments of R$1.1 billion per crop year. As such, its operations are assured and so is the commitment to over 10,000 team members, their families, communities, partners, suppliers and clients. Currently, the business is responsible for 10% of ethanol supply in the Brazilian market.

The plan specifies payment conditions for diverse classes of creditors. Priority is given to suppliers, who are essential for the operation, who should be paid the full nominal amounts plus any amount related to labor laws. Labor dues will be paid within 12 months. As for amounts payable to suppliers and agribusiness partners, the proposal is to pay them in up to three years.

Unsecured creditors and micro and small companies may choose to receive their dues within 90 days from the approval of the plan, up to the limit of R$50,000.

The strategy is to deleverage Atvos by transferring a portion of the debts of its operating units, which will reduce the ratio of the company’s net debt to EBITDA from six to three times, maintaining it at industry levels. This reallocation includes amounts owed to financial institutions, which represent 92% of total debt.

The financial balance, which envisages a minimum consolidated cash balance of R$800 million, will enable the company to follow its business plan, expand sugarcane fields, reduce idle capacity and increase cash generation. The funds necessary for the reorganization will come fully from the operation.

The court-supervised reorganization plan became public and, after the period for disputes and negotiations, will be submitted for approval by the General Creditors’ Meeting and ratification by the courts.

The plan also includes the company’s economic and financial reports and the valuation report. For more information on Atvos’ court-supervised reorganization, visit the website by clicking here.