J&F’s Brazil pulp unit to seek partner after leniency deal -report
Eldorado's aim would be to find a partner to inject up to $1 billion into the company as it seeks to expand its Três Lagoas pulp mill, budgeted at a total cost of $3.07 billion.
Brazilian wood pulp processor Eldorado Brasil Celulose SA may resume the search for a strategic partner once parent company J&F Investimentos SA completes the negotiation of a leniency deal in a massive corruption investigation.
In an interview with the paper, Chief Executive Officer José Grubisich did not comment on the plans specifically. He said J&F intends to grow its wood pulp business, but did not provide details. Eldorado’s priority is to roll over about 1.5 billion reais of trade credit lines to keep its finances in order until the end of the year.
“Eldorado has never been in as good a moment in terms of cash flows and operations,” it quoted him as saying. “We don’t have solvency or liquidity problems.” Eldorado sought a waiver from creditors who are owed 6.7 billion reais, Valor said, adding that talks with creditors were concluded last March.