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Justice suspends arbitration again and transfer of Eldorado to Paper Excellence is canceled

In a new decision, judge José Carlos Costa Netto of the São Paulo Court of Justice (TJ-SP) suspended all legal proceedings related to the dispute.

In a new decision, judge José Carlos Costa Netto of the São Paulo Court of Justice (TJ-SP) suspended all legal proceedings related to the dispute over control of Eldorado Brasil.

As a result, the arbitration between the partners J&F Investimentos and Paper Excellence (PE), as well as the annulment action initiated by the Batista holding company in the ordinary court, after a defeat in the arbitration procedure, are suspended. The decision was considered “atypical” by PE and prevents the Asian group from taking control of the pulp producer.

“This decision, which halts the investment of R$ 10 billion in the construction of Eldorado’s second operating line (Vanguarda 2) in Mato Grosso do Sul and the consequent generation of thousands of jobs in the region, is in clear conflict with the decision of the Judge Franco de Godoi”, declared Paper Excellence, in a note.

Last Friday, judge José Benedito Franco de Godoi, from the 1st Reserved Chamber of Business Law of the TJ-SP, had revoked the injunction that prevented the transfer of control of Eldorado, paving the way for the conclusion of the sale.

The PE also stated that the new decision “causes astonishment, since Franco de Godoi was defined as rapporteur in the scope of the Conflict of Competence, judged by the Special Group of the Court of Justice, of rapporteurship by the judge Costa Netto himself last August”.

“The company will take all procedural and administrative measures at all levels to reverse this atypical decision of the judge Costa Netto, which violates his rights and compromises the predictability and legal certainty that characterize the performance of the São Paulo Court of Justice”, concluded the company.

Source
Valor Econômico
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