Atvos files for court-supervised reorganization

Atvos, Brazil’s second largest ethanol producer, filed on May 29 a request for court-supervised reorganization in the courts of the state of São Paulo in order to preserve its operations, ensure its financial equilibrium and, especially, underscore its commitment to the more than 10,000 team members, their families, communities, partners, suppliers and clients.

This process results from a hostile bid by an international fund – a creditor of Atvos – which, through a lawsuit, placed the company’s operations at risk.

By taking this legal measure, Atvos enables a safe and stable environment to balance its accounts in order to attain its full production capacity in the coming years.

Over its more than 11 years of operation, Atvos has consolidated its position in the sugar and ethanol sector, currently accounting for 10% of the ethanol supply in the Brazilian market. The company generates more than 40,000 direct and indirect jobs in four Brazilian states (São Paulo, Mato Grosso, Mato Grosso do Sul and Goiás). In the 2019/20 crop year, it expects to crush around 27 million tons of sugarcane, enough to produce 2.1 billion liters of ethanol and 237,000 tons of VHP sugar, and to generate 2,900 GWh of electricity.

Atvos reinforces its long-term vision of the sector and, through the court-supervised reorganization, intends to continue its growth trajectory while accelerating its plans to invest in the production of clean and sustainable energy.

The reorganization request does not in any way affect the businesses of the Odebrecht group. Atvos is working on the first version of the court-supervised reorganization plan and has 60 days to submit it to the courts.