Atvos successfully finishes its judicial reorganization process and opens a new cycle of growth for the company

NOTÍCIAS

20/09/2023

Departure from RJ and investment of R$500 million by Mubadala Capital mark a new moment for the company

São Paulo, September 18, 2023 – Atvos, one of the largest biofuel producers in Brazil, has completed its judicial reorganization process, which began in May 2019. The decision was handed down by the judge of the 1st Bankruptcy and Judicial Reorganization Court of Capital of São Paulo, which also approved the addendum to the reorganization plan. Thus, a new debt payment structure is provided, both for non-financial unsecured creditors (suppliers) and for financial creditors (banks).

Of the total original financial debts since the establishment of RJ, 54% had already been settled, while the deadline for paying the remaining debt was extended until December 2042. Interest, originally priced at 115% of the CDI, is now at 100% of the CDI.

The approved addendum also provides for the full payment of the balance of non-financial creditors still existing within the next 30 days, so that 99.99% of all non-financial creditors will be settled, which is equivalent to 97% of the debt in this category since the start of the procedure.

In line with the Judicial Reorganization Plan, the company will receive an investment of R$500 million from Mubadala Capital, significantly reducing its leverage, which will be 1.4 times (net debt over EBITDA)1, with the prospect of falling.

“The reorganization of Atvos – one of the largest and most complex ever faced in the country – required negotiations with a high level of complexity, highlighting our way of working in partnership with the company, creditors and other affected parties to continuously seek the best solution. For Mubadala Capital, the result of completing this process further reinforces our commitment to have a social impact in the communities where we operate. Maintaining Atvos’ 10,000 jobs undoubtedly strengthens not only agribusiness and the economy in various regions, but also the socioeconomic development of the municipalities where it is present,” stressed Sergio Carneiro, CEO of Mubadala Capital in Brazil.

“The closure of the judicial reorganization process is a major milestone in the history of Atvos and Brazil, as we are one of the most important players in the production of biofuels, with great relevance in the transition of the energy matrix,” said Bruno Serapião, CEO of Actos.

“This is an emblematic moment that was only possible to achieve thanks to the dedication and cooperation of our 10 thousand employees, the partnership of our customers, suppliers, land partners, creditor banks, communities and other stakeholders. And, above all, to the trust of Mubadala Capital for believing in the company’s purpose of producing clean energy that moves the world and transforms lives,” adds the executive.

 

A new moment

Atvos will have invested R$1.6 billion in its operations by the end of the current harvest, mainly in the agricultural and industrial areas of its units distributed in the states of Goiás, Mato Grosso, Mato Grosso do Sul, and São Paulo, in addition to increasing contributions in innovation and new technologies.

These investments are expected to increase the production of ethanol, a product that has good growth prospects, as most emerging countries must use biofuels as a sustainable solution to reduce emissions.

“The global biofuels market has great growth potential. Because of that, we have a solid plan that seeks to increase the productivity rates of our current portfolio and reach the milestone of 32 million metric tons of sugarcane crushed over the next years,” said Serapião.

These movements are in line with the long-term vision of our shareholders, aiming to strengthen socioeconomic development actions in the regions where the company operates, generate even more value for the entire sugar-energy chain, and deliver products with greater efficiency, while positioning Atvos as one of the top players in the transition of the energy matrix in Brazil and the world.

1 Based on the results of the last 12 months ending in July 2023 and considering the contribution to be made.

 

About Atvos

Atvos is a bioenergy company, being one of the largest ethanol producers in Brazil. Using sugarcane as its raw material, the company has the capacity to produce around 2.9 billion liters of ethanol, which can move 58 million compact cars and  650,000 metric tons of VHP sugar, capable of sweetening over 18 million birthday parties, in addition to co-generating approximately 3,900 GWh of electricity from biomass, enough to supply a population of over 18 million people. It has over 9,000 Members in the states of Goiás, Mato Grosso, Mato Grosso do Sul, and São Paulo, where its nine agro-industrial units are located.

As a relevant player in the generation of clean and renewable energy, the company is one of the country’s main issuers of decarbonization credits (CBIOs), have renewed the RenovaBio certification of all its agro-industrial units until 2025. Also, on the social and environmental front, it has the Energia Social program, which supports projects that focus on topics such as education, culture, health, safety, environment, and productive activities. The initiative aims to promote socioeconomic development and improve the quality of life in the communities where the company operates. For more information, please visit: www.atvos.com.