Last Friday, the 17th, J&F Investimentos obtained an injunction to suspend the transfer of control from Eldorado Brasil to Paper Excellence – again. The decision was signed by Judge José Carlos Costa Netto, from the São Paulo Court of Justice (TJ-SP), after a request made on behalf of businessman Joesley Batista.
J&F’s request targets Judge-Rapporteur José Benedito Franco de Godoi through an appeal made on behalf of Paper Excellence related to a questioning of conflict of competence that would indirectly impede the transfer of control.
On that occasion, the Batista brothers’ holding company endorsed the name of Franco de Godoi for the case and Paper Excellence waived the appeal. After Franco de Godoi communicated to the arbitral tribunal, in early February, that he had denied a suspensive effect requested by J&F, the holding company decided to take the case to Costa Netto, who granted a suspensive effect to the decision to transfer control of Eldorado and requested that judge the conflict of interest of the judge-rapporteur before issuing a final decision.
The BRL 15 billion deal, signed in September 2017, was expected to be completed in the coming days, but the dispute continues. The expectation of Paper Excellence, controlled by the Indonesian Jackson Wijaya, when concluding the transaction is to give vent to its investment project for the pulp producer, including a second production line.