Construtora Rossi asks for judicial recovery

Rossi Residencial announced to the market this Monday (19) that it has filed for bankruptcy protection. Since 2017, the construction company has been trying to pay off debts, which total almost R$ 600 million, and resume cash flow.

“The request for court-supervised reorganization represents a fundamental step in the Rossi Group’s economic-financial process, which began in December 2017, with the restructuring of corporate debts contracted with financial institutions”, said the company in a material fact.

The request was filed at the 1st Court of Bankruptcy and Judicial Reorganizations of São Paulo and exposes the long-standing crisis that has already made Rossi issue more than ten material facts in about a year with clarifications on the bankruptcy request. In them, in general, it states that “the company has not yet been cited and, as soon as it is, it will present its defense within the legal term”.

Rossi accumulates a net debt of R$ 594.5 million and, on the stock exchange, sees its shares lose half their value.

Among the creditors are employees, engineering companies and financial institutions.

In its balance sheet for the second quarter, the last publicly available data, Rossi stated that it had a cash position of R$ 4.4 million.

Rossi is part of Grupo Rossi, founded in 1913. Among the projects in which it participated are the Elevado Arthur da Costa e Silva (known as Minhocão) and Praça Roosevelt, in São Paulo; the Elevado do Joá, in Rio de Janeiro; Itaipu; the Carajás Railroad; the Tucuruí hydroelectric plants, on the Tocantins River, PA, and Palmar, in Uruguay and the subway section between Santa Cruz and Praça da Árvore stations in the capital of São Paulo.

with Reuters