The Eldorado case continues running in arbitration court while the Court does not decide whether to annul the sentence that determined that J&F Investimentos delivered the pulp company to Paper Excellence. Now, the battle faces a new chapter.
To put pressure on the Batista brothers’ holding, the Indonesians at Paper Excellence intend to ask the arbitrators to withhold part of the R$4 billion that must be delivered for the purchase of Eldorado, according to sources close to the process. They will allege that there is a risk that J&F will not pay the stipulated amount at the end of the calculation of the indemnities and, therefore, would have the amount withheld as collateral.
At the moment, the process is in the process of investigating these possible indemnities – at this stage, the arbitrators decide whether the PE is entitled to compensation due to the delay in taking over Eldorado, since the ownership of the company was recognized as rightfully its own.
Paper’s lawyers claim, for example, that there was a kind of loss of profits during the imbroglio, as, without being able to take possession of the company, PE could not invest in a second production line, and they calculate a daily loss of R$ 1 .8 million, which, in a year, would reach R$ 657 million – the arbitration alone lasts about two years.
Thus, Paper Excellence wants to try to show that J&F can leave the dispute with nothing or with a value well below the BRL 4 billion that were agreed. Now, it is up to the arbitrators to decide to agree with the PE on the possibility of the holding company not paying the indemnities and also what will be the amount due. Until the court’s decision, the purchase amount remains withheld.
In addition, the court must choose a new arbitrator following attorney Anderson Schreiber’s resignation from the lawsuit. He was accused of bias by J&F, which is seeking to overturn the decision in court, and resigned with a lengthy letter addressed to the court defending the allegations.