MP enters dispute over Eldorado – 05/26/2023 – Panel SA

MP enters dispute over Eldorado – 05/26/2023 – Panel SA

After a complaint from Eldorado, the Public Prosecutor’s Office of São Paulo manifested itself in the dispute over the company’s command between J&F, owned by the Batista brothers, and the Indonesian group Paper Excellence. It is the first time that the public power interferes in the business fight.

In the request, Eldorado complained that the judge Franco de Godoi could not have determined the transfer of Eldorado shares held by J&F to Paper because, at that moment, there was a discussion about who is the judge of the case in progress in the Court of Justice from Sao Paulo.

In March, Franco de Godoi, the original rapporteur of the case, had determined the transfer of control of Eldorado to Paper.

J&F appealed the decision. A series of petitions began questioning who would be responsible for judging the case until, earlier this year, judge José Carlos Costa Netto sent the controversy to the special panel. Nothing has been decided yet.

This Wednesday (24th), however, the São Paulo Public Prosecutor Leila Mara Ramacciotti came out in defense of Franco de Godoi.

She claims that Eldorado’s complaint has no basis in the Code of Civil Procedure and that the decision of judge Franco de Godoi “did not pass through the competence of the TJSP, much less violate Costa Netto’s authority”.

For the prosecutor, Eldorado’s complaint demonstrates “repeated non-conformity” and the attempt to change Franco de Godoi’s decision “by means of an inadequate review body”.

While the case is not resolved, J&F and Paper Excellence continue filing appeals in various spheres of the Judiciary to determine who will be the winner of the dispute involving more than R$ 15 billion.

As Panel SA showed, the companies also face each other in two arbitration processes. One of them, conducted by CAM-Market, a chamber linked to B3, analyzes alleged abuses committed by Eldorado directors.

The other arbitration, which has already ended, defined who owns the control of Eldorado sold by J&F to Paper, but which, due to alleged non-compliance with contractual clauses, became a legal battle.

The Indonesian group won the lawsuit, but J&F went to court to question the suspicion of the referees.

Depending on the final judgment in this case, one of the companies may be entitled to damages that are estimated to be around R$ 6 billion.

Sought, none of the three companies wanted to comment on the case.

With Diego Felix

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