Ecman Construction Requests Bankruptcy for Raízen, While the Energy Company Refutes the Request, Claiming It Is “Manifestly Unfounded”

Raízen Energy Confirms It Has Service Contracts With Construction Company Ecman, But Explains That They Were Revoked, Claiming That The Bankruptcy Request Is Unfounded.

Through a statement issued last Friday (01/13), via the Securities and Exchange Commission, Raízen (RAIZ4) responded to questions raised by B3. The arrangement referred to a bankruptcy request from Raízen Energy, filed by the construction company Ecman. However, the Brazilian company in the energy sector denies that such a request is invalid.

Due to Contracts Without Compensation, Construction Company Ecman Requests Bankruptcy of Raízen Energy, But The Company Declares That It Was Not Judicially Notified

According to the document signed by Carlos Alberto Bezerra de Moura, Chief Financial Officer and Investor Relations Director of Raízen, the company had not been judicially informed about the events.

However, it was confirmed that Raízen Energy had service contracts with construction company Ecman, which were revoked on November 30. According to Carlos Alberto, the reason for the contract cancellations was the construction company’s defaults.

According to the executive, Ecman is said to have issued titles without the proper compensation. Because of this, Raízen legally requested the interruption of papers worth R$ 25 million.

It was also requested that the court prohibit the construction company from protesting titles related to the contracts established between the two companies, under penalty of a fine.

 “The company believes that the bankruptcy request is clearly unfounded and clarifies that the amount in dispute does not materially impact its business, considering the financial situation of Raízen Energy,” states the document.

Ecman, for its part, sent a note to the newspaper Valor Econômico stating that all the titles presented represent services rendered, supported by technical and accounting documentation.

Furthermore, according to the text, the bankruptcy request was made because Raízen allegedly refused to recognize and pay for the services rendered.

“Construction Company Ecman strictly followed legal and ethical precepts in conducting all negotiations regarding this matter,” said the company. The note also emphasizes that the documents will be examined in the process.

The Energy Company Rebuts Bankruptcy Request Through Statement

Raízen adds that a preliminary decision has already been made against Ecman.

The statement presents two factors: “i) Stay and suspension of all effects of the protests filed against Raízen Energy by Ecman (approximately R$25 million); ii) Ecman should refrain from protesting titles related to the contracts made between the parties, under penalty of a fine, as the Court understood that there are indications of issuing invoices without backing of service provision.”

The company reiterates that the bankruptcy request is “clearly unfounded” and explains that the amount in dispute does not impact its business, considering the total assets of Raízen Energy.