(MENAFN- Brazil-Arab News Agency (ANBA))
São Paulo – Atvos , one of the biggest biofuel producers in Brazil, has completed its judicial recovery process as part of the plan to receive investment from Mubadala Capital , an investment fund from the United Arab Emirates. Mubadala will invest BRL 500 million (about USD 102.86 million at the current rate) in Atvos.
Atvos' judicial recovery began in May 2019 and ended after a decision by the 1st Bankruptcy and Judicial Recovery Court of São Paulo, which also approved the addition to the recovery plan. As a result, a new debt payment structure for suppliers and banks was approved.
Of the total financial debts, 54% had already been solved, and the deadline for paying the remainder was extended until December 2042. With Mubadala's investment, Atvos will significantly reduce its leverage to 1.4 timesdebt over EBITDA, with the prospect of a decrease.
“For Mubadala Capital, the result of completing this process further underscores our commitment to social impact in the communities where we operate. Maintaining Atvos' 10,000 jobs undoubtedly strengthens not only agribusiness and the economy in several regions, but the socioeconomic development of the municipalities where it operates,” said Sergio Carneiro, executive director of Mubadala Capital in Brazil, in a statement.
“This is an emblematic moment that was only made possible thanks to the dedication and cooperation of our 10,000 employees, our customers, suppliers, land partners, creditor banks, communities, and other stakeholders. And, above all, to the trust of Mubadala Capital for believing in the company's purpose of producing clean energy that moves the world and transforms lives,” said Bruno Serapião, CEO of Atvos.
Atvos prospects
Atvos is one of the largest ethanol companies in Brazil, with the capacity to produce 2.9 billion liters a year from sugar cane. The company is also one of the leading national issuers of decarbonization credits (CBIOs). By the end of the current sugarcane harvest, Atvos projects to invest BRL 1.6 billion (about USD 329.14 million) in its operations and increased investments in innovation and new technologies. This will increase ethanol output, with sound prospects when the world is looking for greener energy.
Translated by Elúsio Brasileiro
Press release/Atvos
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