Pulp News

Eldorado pays billion dollar debt with BNDES

The loan totaled R$5 billion and financed part of the company's factory and forests in Mato Grosso do Sul

Eldorado Brasil, a pulp supplier for the North American tissue market, led by J&F Investimentos, paid in advance the debt of the only active financing of the group with the National Development Bank (BNDES). Thereby, the path for Paper Excellence (PE) to take control of the pulp producer only awaits the end of the process of the annulment of the arbitration request made by the holding company of the Batista brothers.

The loan made with the BNDES was R$ 3 billion, yielding R$ 2 billion in interest, and financed part of the Eldorado factory and forests in Mato Grosso do Sul. The maturity was for 2022. Now, only one financial commitment remains. from Eldorado, with Banco do Brasil, in the amount of R$ 500 thousand.

Although the payment facilitates the process, the dispute between J&F and PE may be far from over. According to Valor Econômico, there is a willingness on both sides to appeal to an unfavorable sentence in the first instance, which could be handed down in the coming weeks.

The case of the fight for Eldorado has been going on for more than three years. The arbitration handed down a unanimous decision in favor of PE, in March, allowing the acquisition and control of the company, according to a purchase and sale agreement made in 2017. However, J&F went to court, asking for annulment and managing to suspend the transfer until the judgment of merit.

The amount referring to the shares and that must be paid to the holding of the Batista brothers are deposited in court, with an estimated total between R$4.5 billion and R$4.7 billion.

As the companies waged a court battle, the company gradually reduced its debt. The total amount attributed in the Eldorado transaction is R$15 billion in debt.

VejaValor Econômico
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