The request for annulment of Eldorado Celulose’s arbitration, sent to court by J&F Investimentos after the defeat by 3-0 in court, may be postponed until the end of October or beginning of November, according to sources close to the imbroglio.
On the one hand, the Batista brothers accuse one of the referees’ partiality; on the other, Paper Excellence (PE), which has been trying to buy control from Eldorado since 2017, says that questioning the partner is yet another way to pressure her for an agreement on the indemnity that will be established in the second stage of the arbitration.
Last Thursday night, the 17th, the São Paulo Court maintained the suspension of the effects of the sentence that allows the PE to proceed with the acquisition of 100% of Eldorado until a new hearing, scheduled for July 12th. The decision was taken by Judge Renata Maciel, of the 2nd Business and Conflicts Related to Arbitration Court of the Judicial District of São Paulo, in a sanitation hearing lasting more than eight hours.
However, before that, the PE will have to explain to the magistrate, by July 5th, why it decided to ratify the arbitration award in the Singapore Court. The company would have resorted to the international court in order to open the way for it to operate J&F in Singapore after the settlement of damages, if its victory in the arbitration is maintained, indicate sources close to the PE. Sources linked to J&F, in turn, maintain that the company asked, in fact, for the execution of the arbitration award that is being questioned in Brazil.
At the new hearing, the judge will reveal whether the suspension of payment of Eldorado’s debts by PE remains, a pre-condition for the acquisition of control, and the beginning of the transfer process of the shares held by J&F, until the ruling on the annulment action or if the acts are already authorized.
Sources close to the conflict assess that a decision to release the prepayment of debts suggests a tendency for the judge to refuse the request for annulment of the arbitral award.
In March, PE was authorized by the National Bank for Economic and Social Development (BNDES) to make the prepayment of a billion-dollar debt of Eldorado, enabling the release of JBS shares given as guarantee by J&F to the loan. The debt to be settled in advance totals R$1.63 billion.
Sought, neither J&F nor PE manifested themselves.