Renuka Brazil must propose the sale of power plants to pay creditors

The Renuka Brazil, indiana''s Shree Renuka Sugars and reorganization since October 2015, should propose the sale of one of its plants in Sao Paulo to be included in a new plan of reorganization. The company is two months in negotiations with creditors to settle the payment of a debt of 2.3 billion R$.
The alternative, raised initially by creditors, was presented today to the other creditors in the General Assembly. The Assembly was suspended for this possibility is discussed in more depth in the next few days and included in a new plan to be voted in a new Parliament, which was scheduled for July 26.
The unit that can turn into a productive unit (UPI) and be alienated is Madhu plant, located in the municipality paulista of promise, which is operating this harvest. The value of the plant must still be studied in the next few days. However, as the time for the new Assembly is short, there is no guarantee that the new plan is presented before the day 26.
If the sale of the plant is right, Madhu priority of Renuka will be using the value raised to pay the creditors that have most of the company''s debt, as suppliers, said Tony Rivera, General Counsel of the company, to the value. Already the debts with creditors and labor     small and medium-sized enterprises would be paid preferably in cash.
With the sale of the plant of promise, Renuka of Brazil would administer only the Revati plant, located in Brejo Alegre (SP).
The general meeting of creditors was installed initially on May 10, but already has been suspended twice because of lack of agreement with major creditors on the terms proposed. Between the creditor banks are BNDES, Caixa Econômica Federal, Banco do Brazil, Northeast Bank, Rabobank, Santander, Votorantim, Itaú Unibanco, new Bank, Bilbao Viscaya, Pan, HSBC Bank, fiber and ABC Brazil.
In addition, Brazil is also of Renuka in reorganization to Renuka — Vale do Ivaí, who runs two plants in Parana and R$ debt 709,400,000. The recovery plan was approved in the House in June, but one of the four classes of creditors, which has not voted for the guarantee plan. Even so, there is expectation that the judge homologue the plan without the approval of this class of creditors, as the proposal had acceptance of 75%.