The decision took even creditors by surprise amid new recovery plan
09/22/2022
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Aircraft belonging to ITA Transportes Aéreos — Foto: Divulgação
After a huge quandary with creditors, the road and air passenger transport group Itapemirim had its judicial reorganization converted into bankruptcy by the judge of the 1st Court of Bankruptcy and Judicial Recovery of the São Paulo Court of Justice, João de Oliveira Rodrigues Filho. The decision was published on Wednesday. The judge also ordered that the assets of Sidnei Piva, the group’s CEO, be frozen.
The decision, however, took even creditors by surprise, according to sources. This is because a few months ago the replacement of the board was approved and the presentation of a new recovery plan by the new leaders was expected. However, bankruptcy came first.
The bankruptcy was filed by the group’s custodian, EXM Partners, in July. The administrator was fighting a battle with the former board of directors over the misuse of funds for purposes other than paying creditors — such as the creation of ITA Transportes Aéreos, which began flying in June last year but stopped in December, leaving angry customers without seats during the holidays.
According to the trustee, R$45.3 million was withdrawn from the cash flow by the former management of Itapemirim. The noncompliance with the judicial recovery plan amounts to R$99 million.
Last May, after the decision of the Itapemirim group creditors to remove the current board of directors, including chair Sidnei Piva, the consulting firm Transconsult was appointed by the creditors as the new judicial manager of the company.
Since June last year, the creditors had been trying to remove Mr. Piva. He was removed in the meeting with 99% of the votes. The new judicial manager would be responsible for making an overview of the group’s scenario and creating a new recovery plan to be exposed to the creditors.
“The disorganization of the management, added to the use of resources for objectives other than the fulfillment of the plan, caused the business operations to collapse,” wrote judge João de Oliveira Rodrigues Filho. Both Itapemirim and Kaissara (the group’s bus companies) operations were compromised by a decision of the National Agency of Land Transportation (ANTT).
By May 2022, the group had debts of R$106 million. There is also a tax liability of at least R$2.387 billion reported until October 2021.
The group would also be in default with labor duties from December 2021 to June 2022. Several workers who were laid off between March and May this year have not received their severance pay.
Itapemirim and Piva were sought but were not available for comment.
*By Cristian Favaro — São Paulo
Source: Valor International