Defense Minister tries to avoid bankruptcy of Avibras – 06/04/2023 – Panel SA

For the third time since its founding, Avibrás, a national missile manufacturer, is trying to get out of debt and not close its doors. For this, the company’s directors are meeting with the Minister of Defense, José Múcio Monteiro, this week, seeking help from the government.

In judicial recovery with a debt of BRL 570 million, the company wants the minister to interfere with the government of the United Arab Emirates so that it can obtain new contracts and, thus, generate revenue.

The Arab country has an incentive program to attract foreign defense companies.

People who participated in the talks stated that Avibras’ intention is to “hitch a ride” on the recent partnership between Brazilian company Akaer and the Arab Edge Group — a state-owned company made up of 24 defense companies.

This partnership provides for the development of laser fuzes and missile guidance systems on aircraft.

Lula’s advisers claim that the government wants to help the company find a way out.

In addition to partnering with other companies, such as Akaer, another solution would be to attract investment.

However, financial aid from the federal government has been ruled out. The company is private and BNDES is one of its creditors.

The government’s role, in this case, would only be to act as a business facilitator.

As Folha showed, the Edge Group is in the process of setting up operations in Brazil. Former Secretary of Defense Products, Marcos Degaut —known in the previous government as Bolsonaro’s man in the Emirates—, is one of those responsible for the landing.

With Diego Felix

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