Justice accepts Petrópolis Group’s request for judicial recovery – 04/13/2023 – Market

The 5th Business Court of Rio de Janeiro accepted this Thursday (13) the Petrópolis Group’s request for judicial recovery, which produces Itaipava, Black Princess and Cacildis beers.

The company claims to have outstanding debts estimated at around BRL 4.2 billion, of which BRL 2 billion would be derived from financial operations and capital markets, and BRL 2.2 billion with large suppliers, according to the request forwarded to Justice at the end of March by Galdino, Coelho, Pimenta, Takemi, Ayoub Advogados and Salomão, Kaiuca, Abrahão, Raposo e Cotta Advogados. In the latter, there would also be drawee risk operations.

The judicial administration of the Petrópolis lawsuit will be the responsibility of Preserva-Ação Administração Judicial and the law firm Zveiter, both from Rio de Janeiro and who also act in the case of Americanas.

The offices had already been appointed by substitute judge Elisabete Franco Longobardi in March, when the group asked for the effects of the judicial reorganization to be brought forward. According to this Thursday’s decision, they will follow up on the brewery’s process.

Last month, when it sent the request for judicial recovery to Justice, Petrópolis stated that its liquidity crisis had been worsening for about 18 months, when it recorded a drastic reduction in revenue. Of 31.2 million hectoliters (1 hectoliter equals 100 liters) sold in 2020, the company ended 2022 with 24.1 million hectoliters sold, and 2021 with 26.4 million.

The crisis, according to the company, is momentary and stems from what the company considered to be a “perfect storm”, with the drop in sales and revenue being accompanied by an increase in the basic interest rate, the Selic. The high level of interest has an impact of approximately R$395 million a year on the group’s cash flow.

In addition to Itaipava, the group manufactures and distributes Petra, Cabaré, Black Princess, Crystal, Lokal, Weltenburger, Brassaria Ampolis (with the labels Cacildis, Biritis, Ditriguis and Forevis). The portfolio also includes Blue Spirit Ice, Nordka and Cabaré Ice vodkas, TNT Energy Drink and Magneto energy drinks, It! soft drink, TNT Sports Drink isotonic and Petra water.

In January 2020, Grupo Petrópolis had 15.3% of the beer market (market share) in Brazil, according to Nielsen data presented by the company in the request. That slice had retreated to 10.6% in August 2022.