Court denies petition for “vulture” fund against OAS Group’s Judicial Reorganization

Court denies petition for “vulture” fund against OAS Group’s Judicial Reorganization

São Paulo, April 7, 2015 –  Judge Daniel Carnio Costa, from the 1st Court of Bankruptcies and Judicial Reorganizations of the São Paulo State Court of Justice, denied yesterday (6) petitions for investment fund so that the Judicial Recovery proceedings of nine companies of the OAS Group took place on a separate basis for each one of them, without consolidation of assets and liabilities pertaining to such companies.

One of the petitioners of the petition denied is Vinci Partners, a Brazilian investment fund.   Another petitioner is “vulture” Aurelius, a North-American fund renowned for speculating with bonds traded in the secondary market.

According to Judge Costa’s decision, “the Judicial Recovery plan will estipulate how each category of creditors will be dealt with, in accordance with the statutory limits, and therefore it is too early and hasty to have this kind of discussion at the beginning of the procedure.”

The judge reminded that the “Judicial Recovery proceedings exists so that the social and economical benefits deriving from the healthy business activity maintenance can be preserved, such as job creation, movement of goods and services, income generation, and tax collection, among others.” “In this sense”, said the magistrate, “the creditors’ private interest shall yield to the public and social interest, which is represented when the purposes of such kind of suit are met.”

In the decision of Monday, Costa commented again on the merger of OAS Investimentos by OAS S.A., organized within the restructuring project scope of the Group. “The merger of OAS Investimentos S.A. has already been analyzed in the decision granting the Judicial Recovery proceedings.”

The judge refers to the granting of the petition for Judicial Recovery held on April 1, when he said that the “issue related to the merger of OAS Investimentos by OAS S.A. (subject-matter of ongoing court order) is irrelevant for the purposes of this procedure, since the equity and liability of them are subject to the Judicial Recovery proceedings.”

The nine companies that went through Judicial Recovery are: Construtora OAS, OAS S.A., OAS Imóveis S.A., SPE Gestão e Exploração de Arenas Multiuso (parent company of Grêmio football stadium), OAS Empreendimentos S.A., OAS Infraestrutura S.A., OAS Investments Ltd., OAS Investments GmbH, and OAS Finance Ltd. They have 60 days as of the granting to submit the Debit Workout Plan to the creditors and vendors incurred until March 31, 2015.

OASNetWebmailContact to OASSitemap
Go to classic version Go to mobile version