Monday, October 23, 2017

Companies lock new battle of milk

The Brazilian market is prodigal in stories of bankruptcies, breakdowns, corporate disputes, lawsuits. The newest battle puts face to face one of the most traditional families in the industry, the brand owner, Benedictis Shefa, and investment manager Kobold, on one side, and the investor Francisco Benedito da Silveira Filho, owner of the credit company BS Factoring, of another.
Since February, runs in the city of Amparo, 140 kilometers from São Paulo and headquarters of Shefa, a process initiated by the Kobold who questions the intrusion of BS Factoring in the dairy business, currently in reorganization. The process brings up one of the most aggressive investors, and mysterious, the sector: Francisco Silveira.
Founded in 1976 by the family, support, Benedictis Agropecuária Tuiuti S.A., known by the brand name Shefa, began to have financial difficulty in 2012, when the banks lowered credit lines for the milk sector and increased interest. Without money to pay suppliers and employees, the company has reduced production and, consequently, revenues fell from 550 million reais, in 2014, to less than half, in 2016 — and the debts they beat a record 220 million reais.
Without a lot of output, the Shefa put the assets up for sale. The Swiss Emmi became interested in business. But, during negotiations, the Shefa was running out of money. If the operations stopped, the company would lose a lot of value, which forced controllers to seek alternatives to touch. That's when Eduardo Benedictis, one of three brothers ahead of business, has agreed to meet with Francisco Silveira, advised by Ernani Ponce, Magma consulting, audit services which the Shefa and helped in the sales process. The combination of a strong brand with a deal with water in the neck was ideal for the investor, known as your appetite for risk.
But the help was a high price. The BS Factoring set out to pre-empt receivables of dairy, but asked how the guarantee mark Shefa, as the other assets of the company had been given as collateral to creditor banks. The day March 25, 2015 BS signed a service contract with the Shefa and released a credit of 20 million reais (liabilities after hit 82 million reais). It was enough for the company keeping the activities while the sale to the Swiss were advancing.
The problem was that the sale never came out. And the Shefa had no other way but to ask judicial reorganization in February this year. The brand, one of the most traditional in grocery stores in the Southeast, as agreed, went to the BS Factoring. From there to here, and the family, Kobold Tuiuti Benedictis are parties in a legal battle with the investor who had come to save business
According to the Kobold, the new owners have acknowledged a debt to 47 million reais with the BS just before filing for reorganization, but suspect that the supposed value would never have entered the company box. In other words, accused Sen of manufacturing debts to make more money on top of the company and set in motion a strategy to take on your command — and minimize the damage with the recovery. EXAMINATION found that Sen personally conducted meetings with suppliers and creditors, identifying themselves as the new owner of Tuiuti.
Wanted for examination, the investor didn't interview. Gilmar Donizete Menighini, lawyer of Sen and responsible for the BS Factoring, claims that the company acts exclusively as creditor in the process of reorganization of Tuiuti. Denies that Sellers or anyone connected to him has assumed control of the company. In the process, Menighini refutes all accusations. Roberto Adabo, Executive who assumed the Tuiuti after replacing the control, said the exam that Sen does not owns the dairy. The family lawyer Benedictis, Fernando Zilveti, and the Kobold refused to comment.
In the process, the Kobold recalls other processes of BS and your founder, arguing that disputes and contested control transfers are part of your history. Roberto Adabo, as well as John milk, worked also in Leader food (milk, including, one of the partners). The leader was one of the three assets that the producer of milk sold during your process LBR for reorganization, in 2014, the ARC Medical logistics, Raquel company and Renata da Silveira Fontoura, nieces of Sen.
At the time, Sen said that he had no link with the ARC. The BS was one of the main creditors of the LBR, with liabilities of approximately 150 million reais. In 2016, the previous owners of the State transport company Patagonia questioned the transfer of control of the business, done in 2011, prior to the filing for reorganization, for Diego da Silveira Pam, also the nephew of Sen, as payment for the amount due to the BS. In 2015, the hygiene products industry Creates Yes, Diadema, in the São Paulo metropolitan region, accused the BS not to check out debts already paid, with the goal of taking over the company.
In his 23 years in the market, the BS Factoring has already signed dozens of contracts with firms in difficulty in the most diverse sectors, such as cleaning products, meat and soybean oil. But the dairy segment is one of his favorites. "It is a sector in which there is no room for error. Margins are tight and the need for housing is high, "says Maurício Nogueira, Coordinator of Agroconsult agribusiness consultancy.
Sen is known to have kept for years a line of credit with Parmalat and, later, with the LBR. In addition to the BS, it is direct partner in seven other factorings. At 57 years old, lives with his family in Itu, where also has participation in tourist transport companies, pulp, juice industry, insurance broker and management of real estate properties. In São Paulo, is one of the investors, along with the son, at the restaurant La Macca, located at Rua Haddock Lobo, in the gardens. Came to work for a few years in banks, but it was BS Factoring Business Promotion, founded in April 1994, which gave financial market projection. Your specialty? Borrow who no one else wants to give credit. "He has a good nose for finding who has potential, but it's worse," says a restructuring market consultant already advised dozens of companies.
The great appetite for risk and willingness to close large contracts, often without any documentation requested by other potential lenders, earned him the nickname "Mad Chico". In General, development funds don't like to give more than 50 million dollars in credit for the same client. Sellers bet higher (often above 100 million) and likes to focus their chips. "When he believes in something, goes down to the last penny," says an attorney who specializes in debt restructuring.
To assume risk size, expensive. Their services can cost up to twice as much as other factorings, around 3% of the total value of the credit. But that's when the company doesn't pay that Sen stands out, according to EXAMINATION it was found. He doesn't back up in time to ask for guarantees in the event of default, as luxury cars, real estate, farms and factories. And don't be intimidated by complex processes and long.
The Kobold action against BS Factoring and Sellers still runs on Justice. If Sen in fact took control of Tuyutí and the credits of the BS are forged, as claims the Kobold, he may be indicted for bankruptcy crimes, especially fraud against creditors in the process of reorganization and possible bankruptcy. In addition to losing the right to carry out business activity, if convicted of crimes, cross-Sellers may even be arrested. As the process unfolds, the following dairy and juice producing Tuiuti with Shefa.
Exame – 20/10/2017 News Item translated automatically
Click HERE to see original
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