Out-of-court reorganization is a legal instrument, under Law 11,101/2005 (Law on Out-of-Court and In-Court Reorganization and Bankruptcy), which allows a company to renegotiate with its creditors its private debts payment conditions, excluding labor dues.
This renegotiation is formalized through an Out-of-Court Reorganization Plan, which is a contract between one or more debtor companies and their creditors covered by the Plan.
The restructuring intended be implemented is established in the form of two Out-of-Court Reorganization Plans: the Plan presented jointly by TPI and its subsidiaries Dable Participações Ltda., Maestra Serviços de Engenharia SA, NTL – Navegação e Logística SA and Vessel-Log Serviços de Engineering SA (“OR Plan of TPI”), and the Plan presented by Companhia de Concessão Rodoviária Juiz de Fora-Rio (“OR Plan of Concer”). Both Plans cover exclusively financial debts resulting from operations carried out under the National Financial System and/or the Capital Markets. Other types of debts were not, and will not be, included in these Plans.
On July 21, 2017, the Company, together with the above-mentioned subsidiaries, filed an application in Court requesting ratification of the Out-of-Court Reorganization Plans. The application was given the case number 1071904-64.2017.8.26.0100 and is underway before the 2nd Bankruptcy Court of the Judicial District of São Paulo.
On July 25, 2017, the Honorable Judge of the 2nd Bankruptcy Court of the Judicial District of São Paulo approved the processing of the Out-of-Court Reorganization and ordered the suspension of all lawsuits and executions related to the debts covered by the Plans.
Triunfo has a history of investment in concessions in the main infrastructure sectors of the country. It has entered new markets in recent years, in line with its strategy of growth and providing differentiated and quality infrastructure services, satisfying customers and becoming one of the most valued companies on the market in its business segment. Due to the discontinuation of certain operating segments of the company, the worsening macroeconomic conditions, the unstable political scenario and executions by creditors, the company drafted a financial restructuring plan. Its implementation started when the possibility of divesting its assets in the market was announced.
The proceeds from the divestment of assets will be used to reduce the debts of the company and its subsidiaries, the out-of-court reorganization plan announced being part of such strategy. The agreement with creditors for debt amortization and the announcement of the ratification request for the out-of-court reorganization of Concer, TPI and the subsidiaries Vessel, NTL, Maestra and Dable are in line with this strategy, which seeks the best solution, given the company’s context, for its indebtedness and for the sustainability of its business.
The main documents related to the Out-of-Court Reorganization process of the Company and its subsidiaries referred to above can be accessed below. The company will keep the market informed regarding the progress of its Out-of-Court Reorganization.