May 30 (Renewables Now) - Atvos, a company that currently accounts for 10% of ethanol supply in Brazil, on May 29 announced that it is filing for bankruptcy protection.
The move is necessary because the subsidiary of Brazilian conglomerate Odebrecht has failed to make payments due to two creditors in the US -- Lone Star Funds and Castlelake -- which lent it USD 250 million (EUR 224.3m) at the end of 2017. According to media reports, the creditors earlier this year asked a court to allow them to take possession of 30% of Atvos’ sugarcane production, pledged as collateral in their loans.
By entering into judicial recovery procedures, Atvos would ensure its continued operations and financial stability, the firm said. It will have to prepare a judicial recovery plan in the coming weeks.
The company expects to grind roughly 27 million tonnes of sugarcane in the current harvest year, or enough to produce 2.1 billion litres of ethanol, in addition to sugar and clean electricity.