Four years of efforts by the Court-appointed Liquidators of three BVI-based companies resulted in payments of almost USD 45 million to the Municipality of São Paulo.
Last week, the Liquidators concluded a deal with BTG Pactual, the largest investment bank in Latin America, to sell the assets of the companies under liquidation, after approval obtained by the Brazilian antitrust authorities (CADE), the securities exchange commission (CVM), the Brazilian Court as well as the Eastern Caribbean Supreme Court.
The deal comprised the sale of a significant equity stake in the Brazilian public-held company Eucatex, as well as the assignment of a USD 30 million debt which was subject to enforcement proceedings. The sale was effected with the approval of the Prosecutors Office and the Attorney General’s Office of São Paulo, with whom DFA has worked closely.
𝑻𝒉𝒆 𝒃𝒆𝒈𝒊𝒏𝒏𝒊𝒏𝒈.
The Municipality of São Paulo applied for the liquidation of the BVI companies in 2017, having subsequently filed a claim within the proceedings for the losses allegedly suffered during the mandate of Paulo Maluf as mayor of Sao Paulo from 1993. The Eastern Caribbean Supreme Court then appointed experienced practitioners Kevin Hellard and Matthew Richardson of Grant Thornton as Joint Liquidators.
In Brazil, Grant Thornton have turned to DFA to takeover the assets of the Liquidations.
𝑴𝒖𝒍𝒕𝒊-𝒋𝒖𝒓𝒊𝒔𝒅𝒊𝒄𝒕𝒊𝒐𝒏𝒂𝒍 𝒆𝒇𝒇𝒐𝒓𝒕𝒔.
The ultimate objective to realize the assets and pay the creditors of the estates involved coordination of efforts from multiple public authorities, lawyers and Courts from 5 countries.
In the BVI, the Liquidators obtained a worldwide freezing order against one of the individuals accused of having misappropriated moneys form the Municipality. With the Superior Court of Justice, DFA successfully obtained recognition of this order, the first of its kind in Brazil in a civil matter.
DFA also represented the Liquidators in a USD 30 million enforcement proceeding filed with the Courts of São Paulo, having obtained favorable rulings by both the first instance court as well as the State’s Court of Appeal.
𝑻𝒉𝒆 𝒐𝒖𝒕𝒄𝒐𝒎𝒆.
After four years of cross-border efforts, the Liquidators were able to pay the full claims filed by the Municipality of São Paulo in the insolvency proceedings. In total, the Liquidators have paid almost USD 45 million to the Municipality of São Paulo.
In Brazil, DFA advised in all aspects relating to cross border insolvency, civil litigation, corporate law, asset tracing, capital markets, and private international law.
See more: https://www.metropoles.com/sao-paulo/politica/maluf-perde-acoes-da-eucatex-em-acordo-para-indenizar-prefeitura-de-sp