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American Fund Lone Star Risks Losing Control Over The Atvos Ethanol Plant; Moreover, Ricardo Knoepfelmacher, An Expert In Company Restructuring, May End Up With 5% Of The Giant Sugar And Ethanol Company!
The saga involving the control of the Atvos ethanol plant did not stop there. December began with yet another twist involving the former Odebrecht Agroindustrial, and the American Fund Lone Star is on the verge of losing, this month, control of the giant sugar and ethanol company to the Mubadala Sovereign Fund, from the Prince of Abu Dhabi!
According to Pipeline, in an agreement closed with creditor banks and without the current controller’s participation, Mubadala Capital could take control of the company, and Lone Star will be left watching!
Reminding that the American fund Lone Star took control of the Atvos in 2020, when the company was already in judicial recovery, after a court decision. In the same year, the fund had purchased control of Atvos from Natixis Bank, which had executed the actions that Odebrecht’s creditor banks held in fiduciary alienation, for a mere R$ 5 million.
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Brazilian producers are leaving Roraima to plant in Guyana, where the government offers land on concession and does not charge taxes, while in Brazil the harvest faces high interest rates and a bureaucracy that hinders even the use of the rivers.
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A Brazilian municipality relies on 97% federal money, has 14 secretariats, 11 councilors, and a budget of R$ 131 million, but only 915 people are formally employed, and no one knows how the other 25,000 live.
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Argentina steps on the accelerator to become a power with a $20 billion agreement, immediate release of $1 billion, reserves above $5.5 billion, and a decrease in poverty to 28.2%.
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Hong Kong leads the ranking of the most expensive fuel in the world and is suffering from a global crisis.
But the cherry on top is the rumors that executive Ricardo Knoepfelmacher, known only as Ricardo K., an expert in company restructuring behind a series of troubled enterprises, may end up with 5% of the giant sugar and ethanol company, which is worth at least R$ 150 million, according to the Estadão.
According to Estadão, Ricardo K.’s entry into the business is part of the same transaction that will mark a powerful investment from Mubadala of Abu Dhabi in the ethanol-producing plant. The restructuring expert would make no payment at all. The shares would be a reflection of him having been the financial advisor to the company.
About The Agreement Closed With Creditor Banks and The Powerful Mubadala From Abu Dhabi
A meeting was called for this day, November 16, by BNDES, Banco do Brasil, Itaú, Bradesco, and Santander, where they will vote on the change of control, already with predefined votes. This possibility was foreseen in Atvos’s judicial recovery plan, and will occur by swapping old debt for new debt and an injection of R$ 500 million into the company.
The transaction between the banking creditors and Mubadala includes an investment of R$ 500 million in the company. Thus, Mubadala would hold 31.5% of Atvos, and the banks, 60%. What caught the attention of some of those involved, however, was that the agreement includes the entry of the Agroenergy FIP Multistrategy fund, from partners Ricardo Knoepfelmacher and Giovanni Forace, from RK Partners, with 5%. Meanwhile, Lone Star and Novonor (formerly Odebrecht) would share the remaining stake of 3.5%.
The Agreement of The Banks Releases Novonor From Guarantees That Were Still Linked To Operations With The Creditors!
Atvos has returned to generate cash and pay its debt commitments, but the agreement establishes an estimated discount of about R$ 2 billion on the debt, at present value, with a term of 20 years and a grace period of 3.
Atvos ended the last fiscal year with adjusted Ebitda of R$ 2.2 billion, an increase of 83% over the previous year and 121% compared to two years ago, almost doubling the planted area in the period. The company is expected to close the current fiscal year with a cash balance of R$ 1.2 billion. With the agreement, the company will change management again.
The agreement of the banks also releases Novonor from guarantees that were still linked to operations with the creditors, in a private arrangement that did not involve a competitive process with other players.
Fund From The United Arab Emirates Operates With Different Billion-Dollar Businesses In Brazil
The fund from the United Arab Emirates became more active in the country this year. It made an acquisition proposal for Burger King Brazil, placed a bid for the joint venture of ethanol BP Bunge Bioenergia, and led a capitalization round at Cerc.
At the end of last year, it purchased the Mataripe refinery from Petrobras. Mubadala operates with different pockets in Brazil, with its own capital from the sovereign fund of Abu Dhabi and with private equity that includes third-party resources.
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