Brazil’s Habib’s Files for Judicial Recovery as OSX Creditors Back US$1.5 Billion Plan
BRAZIL · MARKETS
Key Facts
—What happened: The owner of Habib’s filed for judicial recovery in São Paulo on 24 August with R$265.2 million (US$51.5 million) of debt.
—Same day: Creditors of OSX, the former Eike Batista shipbuilder, approved a plan covering R$7.5 billion (US$1.5 billion) of debt.
—The catch: OSX filed nothing this week; it entered recovery in January 2024, and a judge must still confirm the plan.
—Who it affects: Habib’s, Ragazzo and Tendall restaurants keep serving customers, while OSX’s labor creditors rejected the plan.
—What comes next: A São Paulo judge supervises the Habib’s restructuring, and a Rio de Janeiro court decides on the OSX plan.
Brazil’s Habib’s fast-food chain filed for judicial recovery on Monday, declaring R$265.2 million (US$51.5 million) of debt. The same day, creditors of Eike Batista’s OSX approved a R$7.5 billion (US$1.5 billion) restructuring plan.
What Habib’s filed on Monday
Grupo Gennius, the company behind Habib’s, Ragazzo and Tendall, filed the request on Monday 24 August. It declared debts of R$265.2 million (US$51.5 million).
A São Paulo court accepted the filing. The group says all of its restaurants continue to operate normally.
It blamed the lasting effects of the Covid-19 pandemic for the squeeze. Habib’s built its name on inexpensive esfihas, the Middle Eastern-style flatbreads sold across the country.
The company had already looked for breathing room earlier this year. The Rio Times reported in August on a court shield that froze its payments for 60 days.
This is the heavier, formal version of that protection. The whole debt pile now sits under a judge’s supervision.
What judicial recovery means in Brazil
Judicial recovery, known in Portuguese as recuperação judicial, is Brazil’s court-supervised restructuring for companies. Once a judge accepts the filing, most debt collections are frozen.
The company and its creditors then negotiate a payment plan. Creditors vote on it in an assembly, divided into classes by claim type.
If creditors reject the plan, the court can declare bankruptcy. Liquidation usually leaves creditors with less than a negotiated deal.
OSX’s creditors said yes on the same day
OSX did not file for court protection this week, despite some headlines suggesting it did. The shipbuilding group controlled by Eike Batista filed its second judicial recovery back in January 2024.
What happened on Monday was the vote. A creditors’ assembly approved the group’s new restructuring plan, covering about R$7.5 billion (US$1.5 billion) of debt.
The support was broad among the big creditors. Of the unsecured creditors present, 82.61 percent voted in favor by headcount.
Measured by value, the yes votes held 95.44 percent of the claims. Micro and small companies approved the plan unanimously.
The labor class was the exception. Its single registered vote was cast against the plan.
The approval does not end the process. The plan still needs confirmation from the 3rd Business Court of Rio de Janeiro.
The assembly also closed just in time. A legal deadline for the vote expired on 27 August.
From shipyards to square metres
OSX was founded in 2007 to build ships and service platforms for the oil industry. It listed on the stock exchange in 2010 as a crown jewel of Eike Batista’s EBX empire.
The fall came fast. Its main client, the oil company OGX, collapsed.
OSX filed its first judicial recovery in November 2013. That process ended only in November 2020.
The company that returned to court in 2024 is a different business. Its strategy now rests on leasing about 3.2 million square metres of land at the Port of Açu.
The finances remain deep in the red. First-quarter 2025 accounts showed negative equity of R$8.64 billion (US$1.68 billion).
The consolidated loss for that quarter alone was R$238.5 million (US$46.3 million). Those figures explain why Monday’s vote mattered so much.
Why the two cases matter
Brazil’s benchmark interest rate, the Selic, stands at 14.00 percent. Companies carrying heavy debt feel that cost every single month.
The same week, a Rio de Janeiro court converted telecom company Oi’s long recovery process into outright bankruptcy. Court protection buys time; it is not a rescue.
For foreigners living in Brazil, little changes at the counter. The esfihas and the delivery scooters keep running.
For creditors and investors, the coming court decisions matter more. They will show how much of these debts can realistically be saved.
Frequently Asked Questions
Is Habib’s closing its restaurants?
No. Grupo Gennius says Habib’s, Ragazzo and Tendall outlets keep operating normally. The São Paulo court now supervises the restructuring of R$265.2 million (US$51.5 million) in debt.
Did OSX file for judicial recovery this week?
No. OSX filed its second petition in January 2024. This week creditors approved a plan covering R$7.5 billion (US$1.5 billion) of debt. A Rio de Janeiro court must still confirm it.
What is judicial recovery in Brazil?
It is a court-supervised restructuring that freezes debt collections during negotiations. If creditors reject the resulting plan, the court can declare bankruptcy.
Connected Coverage
We covered the first warning signs in Habib’s 60-day court protection; retailer Casas Bahia later took the same path in its own bankruptcy-court filing. More on our Brazil hub.
Sources: g1, Forbes Brasil, InvestNews, and OSX Brasil’s filings to Brazil’s securities regulator, the CVM. Exchange rate: R$5.1503 per US dollar on 27 August 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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