Mubadala lastly takes to Atvos

Creditors meeting today approved change of control in the sugar and alcohol company, with Lone Star and Caixa voting against; creditor questions RK’s participation

Mubadala Capital is the new controller of sugar and alcohol company Atvos. The meeting of creditors today approved by majority the proposal made by the new investor and in line with the main creditors, Pipeline found out, which removes the American fund Lone Star from the control of the company. Lone Star and Caixa were against the proposal.

The Arab fund had been waiting for approval for just over a week, but the first meeting turned out to be more tumultuous than expected, with questions from Lone Star and also from Caixa, the only public bank that had not been previously informed about the the conditions of the proposal. Banco do Brasil and BNDES are the biggest creditors, with almost 70% of the debt.

The meeting was rescheduled for today to allow time for analysis by Caixa, which asked for a 60-day deadline and got 10. Caixa spoke out against the release of guarantees by Odebrecht, but it was voted out.

At today’s meeting, the BNDES was once again questioned by Lone Star about the payment of 5% to FIP Gestor and about the effective participation that the consultancy RK Partners will have in Atvos. The American creditor and shareholder also questioned RK about the reason for its participation in the meeting, which presented itself as a former advisor.

The fund’s main question, however, is about the lack of a competitive process in which proposals could be disputed, which would be in the interest of state-owned banks. BNDES understands, however, that Mubadala’s proposal is in the best interests of the company and creditors.

Caixa and Lone Star voted against the change of control, which was approved by the other creditors representing 80% of the debt (BB, BNDES, Santander, Bradesco and Itaú).

In addition to extending the debt and a grace period given by the banks, the approved operation includes a contribution of R$ 500 million from Mubadala to the company’s cash, capital that will be used to expand the planted area and production at Atvos.

Source: Pipeline Value