RIO DE JANEIRO, BRAZIL – Cultura Bookstore’s request to approve a new bankruptcy protection plan was rejected by Judge Marcelo Sacramone of the 2nd São Paulo Bankruptcy Court.
According to the judge’s decision, the company has five days, counting last Friday, September 18th, to prove that it has fulfilled all obligations of its bankruptcy protection plan, under penalty of having its bankruptcy decreed. According to information from O Globo, Cultura will appeal the decision.
The bookstore has debts of approximately R$285 million (US$57 million) and argued at the creditors’ meeting on September 14th the need to review payment obligations under the bankruptcy protection plan, due to the negative impact of the novel coronavirus (Sars-Cov-2) pandemic on its operations. The proposal was rejected by creditors.
Several creditors, including the company’s former employees, claim that the bookstore has failed to comply with its obligations. Should the company fail to prove within five days that it has honored its commitments, it may be declared bankrupt and its assets will be liquidated to pay the debts.
Cultura’s defense counsel states that it will appeal the court decision.