The process was conducted by the law firms Marcos Martins Advogados and DASA Advogados
Cerealista Rosalito, an important agribusiness company known for planting and selling cereals, has just had its judicial reorganization plan approved. The company has a debt of R$70 million. The process was drawn up jointly by the law firms Marcos Martins Advogados and DASA Advogados.
Founded by the Pegorer family in the city of Santa Cruz do Rio Pardo, in São Paulo, in 1984, Rosalito operates in the processing, trade and transportation of grains, especially rice and beans. The company achieved revenues of R$300 million in 2019, ranking fifth in rice processing in the state of São Paulo.
However, due to corporate restructuring and the crisis resulting from the pandemic, the company recorded a sharp drop in revenue, and was forced to resort to borrowing from financial institutions, which led to cash commitments. The situation worsened, and it was even necessary to suspend activities before filing for judicial reorganization.
Faced with these facts, the most appropriate solution to restructure the debt and allow the company to re-establish its activities was to file for judicial reorganization.
The petition was filed on January 21, 2021 and involved a major challenge for the company and the law firms in charge of the restructuring process, especially considering the high bank debt and the arduous negotiations with creditors.
The Plan approved, drawn up and negotiated jointly by the law firms provides for the sale of the company’s Isolated Production Units, which hold first-rate industrial assets and very high potential for significant revenue, consisting of high-tech machinery and equipment and even real estate.
The expectation, given the quality of the assets to be sold, is for a very competitive process, which will be coordinated by professionals from the law firms Marcos Martins Advogados and DASA Advogados.
From the outset, the company has shown its intention to negotiate its debts and has worked hard to overcome its financial crisis, recognizing its social importance as a generator of jobs, payer of taxes and provider of high-quality food.
The plan, which was presented to the creditors at a meeting, is now going to the courts for approval. The case, number 1000101-23.2021.8.26.0539, is being processedat the 3rd Civil Court of Santa Cruz do Rio Pardo.
In a statement, Dr. Carlos Deneszczuk, a partner at DASA Advogados, said that “Judicial Recovery, conducted by experts in the field, aims to resolve conflicts of business interests, constituting an effective instrument for companies in a delicate situation to have the opportunity to reorganize, and consequently overcome the moment of difficulty with the aim of maintaining their activities and prospering”.
Also in a statement, Dr. Marcos Martins, founding partner of Marcos Martins Advogados, emphasized: “The legal tool of judicial recovery is the best way to give survival to companies hit by the crisis, to preserve the company, its activities, and which will provide a stimulus to the economy and the exercise of its social function” and also said: “It is an immense pride to be part of the restructuring of an economic group that has a very relevant role in Brazilian agribusiness. We have every confidence that this will be another successful recovery and that the company will find itself fully restructured and back on the road to business success.”
