The discount spree is over at the bankrupt Banco Santos.
Major debtors of former banker Edemar Cid Ferreira (left), such as the Odebrecht and CR Almeida groups, had been obtaining discounts of up to 75%, granted by the bankruptcy administrator Vânio Aguiar (right); the courts put a stop to it.
Fernando Porfírio _247 – The São Paulo Court has ordered the suspension of new agreements between the administrator of the bankrupt Banco Santos, Vânio Aguiar, and debtors of the bank that was headed by Edemar Cid Ferreira. The decision is provisional, but it halts the application of discounts that reach up to 75% of the debt value.
The measure taken by Judge Araldo Telles of the São Paulo Court of Justice responds to a request from a group of creditors of Banco Santos. The judge understood that there is a danger that the agreements could cause serious harm to the creditors of the bankrupt bank.
The injunction only blocks the ratification of the latest agreement signed with major debtors such as Reluc Gráfica, Hospitais Integrados da Gávea, Tenda Atacado, and Ferrucci & Cia. In addition to these debtors, there is another appeal pending in court concerning agreements made with the construction companies CR Almeida, Odebrecht, and Delta Engenharia.
The appeal (interlocutory appeal) against the agreements was filed by a group of creditors led by the Real Grandeza Social Assistance Foundation. The entity claims that the settlements are causing enormous damage to the coffers of the bankrupt estate, with the granting of discounts reaching up to 75% of the debt amount.
According to Real Grandeza, the bankrupt estate has already received approximately R$ 1,2 billion in cash and granted discounts to debtors totaling R$ 800 million, which, with added interest, amounts to R$ 1 billion. The entity maintains that the beneficiary companies are capitalized and can afford the payments due. For the creditors, the agreements hinder the raising of funds needed to settle the bank's debts.
The bankruptcy of Banco Santos was declared in September 2005 by Judge Caio Marcelo of the 2nd Bankruptcy and Reorganization Court, who appointed Vânio Aguiar as the judicial administrator of the bankrupt estate. The bank had a deficit of R$ 2,2 billion.