InterCement and Mover File for Judicial Recovery Amidst R$ 14.2 billion Debt
InterCement, Brazil’s second-largest cement producer, along with its parent company, Mover Participações (formerly known as Camargo Corrêa), have filed for judicial recovery due to a debt of R$ 14.2 billion ($2.4 billion). This move has significant implications for the Brazilian business landscape.
The debt breakdown includes R$ 6.3 billion ($1.1 billion) in debentures, R$ 3.5 billion ($0.6 billion) in international bonds, R$ 3.1 billion ($0.5 billion) owed to Bradesco bank, and R$ 1.4 billion ($0.2 billion) in other obligations.
This financial strain reflects broader challenges within the Brazilian corporate sector, especially amidst economic uncertainties.
InterCement had been negotiating with creditors for over a year, trying to restructure its debt while exploring asset sales. However, these efforts did not prevent the need for judicial recovery.
The company’s attempt to sell to CSN has been suspended, highlighting the complexities of corporate transactions under financial stress.
Interestingly, Loma Negra, InterCement’s Argentine subsidiary, is excluded from the judicial recovery request. This exclusion could provide some strategic flexibility for potential asset sales or restructuring in the future, offering a glimmer of hope for the company’s recovery.
Despite its financial woes, InterCement asserts that it has robust cash generation capabilities. This claim will be crucial as the company navigates through the judicial recovery process.
The ability to generate cash could be a lifeline in meeting obligations to creditors and shaping the company’s future.
InterCement and Mover File for Judicial Recovery Amidst R$ 14.2 billion Debt
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