Itapemirim creditors who suffered Sidnei Piva default try to stop bankruptcy in court

A group of foreign creditors of Itapemirim, with whom the company had a debt of US$ 16 million (R$ 83 million) when it changed hands — when it passed from the Cola family to the businessman Sidnei Piva, in 2017 —, is committed to barring the bankruptcy of the company in court. They must file a request for suspension of the process on Monday (26).

The group’s insolvency was decreed on Wednesday (21) by the Court of Justice of the State of São Paulo. Decision signed by Judge João de Oliveira Rodrigues Filho, of the 1st Court of Bankruptcy and Judicial Reorganizations, determined the change of the judicial reorganization process, to which the group had been subject since 2016, to bankruptcy.

The road transport company’s tax debts total around R$ 2.8 billion. It is estimated that the other debts, with banks, investors, suppliers and employees, are between R$ 300 million and R$ 500 million.

This group includes the manager Queluz, which represents the investors who, in 2006, granted a loan of US$ 45 million, as a result of the issuance of a debt bond abroad. The debt was being paid until Piva arrived at the helm of Itapemirim, when the company was already in judicial recovery.

“It’s a long and sad story”, says John Schulz, partner at Queluz. “In 2019, Piva made an agreement with us: he would sell some properties and raise at least US$ 8 million, half of what we had to receive. We accepted to receive half of what was owed, fearing that we would not receive anything “, says the executive.

Instead of paying the group, however, Piva would have used part of the funds to create ITA (Itapemirim Transportes Aéreos). The company, launched in June last year, closed its activities six months later, in December, leaving thousands of consumers without flying and without receiving a refund, until today.

As it did not comply with the agreement with the creditors, the debt returned to the level of US$ 16 million. Piva was removed from the command of Itapemirim, which is in charge of EXM Partners, administrator of the group’s judicial recovery process. It was EXM that filed for bankruptcy for Itapemirim in July, on the grounds that the judicial reorganization process was not being carried out, and creditors continued to receive no payment.

“But now, with this unexpected decision, the company’s bankruptcy, just four months after a consultancy, Transconsult, supported by creditors, started work at Itapemirim, to identify alternatives for the payment of debts, we run the risk of running out of receive absolutely nothing”, says Schulz.

Interestingly, the judge declared the group bankrupt, but determined that the proposal of Suzantur (Transportadora Turística Suzano Ltda.) be accepted, which is willing to lease, for a period of 12 months, renewable for an equal period, all lines, brands and part of Itapemirim’s operating properties.

“It’s completely bizarre,” Schulz says. “How does the Court determine that the company enters bankruptcy, because its assets have been squandered, but its assets can be leased? It would not be prudent to expect Transconsult to have sufficient time to identify alternatives for debt payment and present them to the Court and the creditors?”, asks the executive, who says he still does not know how Suzantur’s proposal came about. “It’s completely illogical.”

The report contacted Sidnei Piva, but did not receive a response until the conclusion of this text.