According to financial sources in São Paulo, creditors have overwhelmingly approved the judicial recovery plan for Cinel Group, owner of Gocil, one of Brazil’s largest private security companies.
The approval occurred during a creditor assembly held last Friday, addressing the group’s staggering R$1.7 billion ($298 million) debt burden. The debt structure reveals that 58.82% (approximately R$1 billion or $175 million) stems from Agribusiness Receivables Certificates and Fiagros.
These are related to the group’s agricultural ventures. The company cultivates rice, corn, soybean, sugarcane, and raises cattle on its productive lands.
Notably, the judicial recovery process included Washington Cinel himself, the founder of Gocil, in his capacity as a rural producer. This strategic inclusion allows for a more comprehensive restructuring approach encompassing both corporate and personal assets.
Gocil’s specific debt amounts to R$280 million ($49 million), with three-quarters classified as unsecured debt without real guarantees. Major creditors include Banco do Brasil, which holds R$370 million ($65 million) in debt, and Banco do Nordeste (BNB) with R$136 million ($24 million).
In addition, the group submitted its judicial recovery petition to the São Paulo Court of Justice in October 2023. Company representatives cited increasing interest rates and pandemic-related business impacts as primary factors necessitating the restructuring.
Cinel Group Navigates Recovery and Expansion
The recovery aims to preserve 70,000 jobs and ensure service continuity. Cinel Group has already begun capitalizing assets to address the debt. The company actively sells real estate and other properties, with particular interest in their Maranhão lands.
The value of these lands could cover most outstanding obligations. The founder and his family have agreed to the repayment terms specified in the judicial recovery proceedings.
Additionally, the group secured R$75 million ($13 million) in loans from BTG Pactual through debtor-in-possession financing with creditor authorization. These loans provide a three-year window for financial stabilization.
Despite these challenges, the company reported impressive 2024 revenues exceeding R$1 billion ($175 million). This financial resilience has enabled the group to pursue expansion into new sectors, including sanitation services and infrastructure projects like public lighting and concessions.
Washington Cinel established Gocil 40 years ago after transitioning from his role as a police officer. The company grew from just 7 security guards to over 20,000 employees.
Beyond security, Cinel diversified into food production by acquiring Broto Legal in 2018, established rice production in Paraguay, and developed cattle breeding operations through Brangus Brasil.
The approved recovery plan represents a critical turning point for this diversified Brazilian conglomerate as it works to stabilize operations while maintaining its market leadership position.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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