This Tuesday (13), the São Paulo Court overturned the injunction suspending the transfer of command from Eldorado Brasil to Paper Excellence (PE). Thus, the minority partner was released to complete the purchase of 100% of the pulp manufacturer, controlled by J&F Investimentos.
Judge Renata Maciel, from the 2nd Business Court and Arbitration Conflicts of the Judicial District of São Paulo, pointed out in her decision that any damage caused to J&F by the transfer of control of Eldorado to PE, while the request for annulment of the arbitration award is still debated, can be reversed.
In this way, PE can continue the prepayment of Eldorado’s debts, to release guarantees provided by J&F and consummate the purchase of shares that it does not yet own in the company.
PE obtained authorization from the National Bank for Economic and Social Development (BNDES), in March, for the prepayment of a debt of R$ 1.63 billion from Eldorado, allowing the release of JBS shares given as guarantee by the J&F to the loan.
The Batista’s holding company tries in the ordinary court to annul the arbitration that unanimously assured to PE the right to acquire control of Eldorado as provided for in the purchase and sale agreement, signed in September 2017 and later declared extinct by J&F.
J&F can still appeal the decision to try again to suspend the effects of the arbitration award.
Sought, neither parts commented on the matter.