Justice declares Pan bankrupt – 02/27/2023 – Market

Judge Marcello do Amaral Perino, of the 1st Regional Court of Business Competence and Conflicts Related to Arbitration in São Paulo, decreed this Monday (27) the bankruptcy of the chocolate factory PAN (Produtos Alimentícios Nacionais).

On the 13th of this month, the company had filed the request for self-bankruptcy within the judicial recovery process it had been going through since 2020.

In recent years, as reported by the Sheetthe company made many layoffs, and the factory in São Caetano do Sul (ABC São Paulo) is in a state of abandonment.

“In view of the unfeasibility of maintaining the company that has a long list of debts and does not present a viable plan for judicial recovery and also evidenced its economic unfeasibility”, wrote the judge, “I would like to convert the judicial recovery into bankruptcy” .

The legal term for transforming a judicial reorganization process into bankruptcy is convolation.

Now, with bankruptcy decreed, the judicial administrator will initiate the definitive closure of the factory. The premises are sealed off and the assets are sold. The money raised is used to pay off creditors.

The order of priority is similar to that provided for in judicial recovery. Workers, micro and small entrepreneurs have priority in receiving, in that order. Afterwards, creditors who do not have a real guarantee, such as banks and suppliers, are assisted. Tax debts come fourth on the priority list.