Justice Decrets Brazil Pharma Bankruptcy

Brazil Pharma had its bankruptcy decreed by Judge Marcelo Sacramone, of the 1st Bankruptcy Court of São Paulo, serving at the request of the company itself. The net indebtedness was greater than R $1 billion. In the document presented by the company in relevant fact, the judge states that "it is not plausible to maintain the existence of a company that has already confessed not being able to pursue its social object." The judge has decreed the immediate alienation of goods and trademarks. The divestment will be published in notice at first call with a discount of 50% of the valuation value, in second call of 30% of the valuation value and in third, with bids from 10% of that value. BR Pharma, which was already controlled by BTG Pactual, was the third largest national pharmaceutical retail company, with Farmore, Sant'Ana and Big Ben networks. The company was in judicial recovery since January 2018. When he communicated that he would ask for his own bankruptcy last week, the group cited difficulties for the sale of Farmore and the fact of raising resources below what is necessary to maintain its operation with alienation of assets and goods. Delloitte was appointed judicial administrator to collect goods, documents and books, as well as to evaluate the assets. In 15 days, the judicial administrator shall present the creditors entitled to the bankrupt mass, and the creditors who have already been submitted by the company are exempt from the qualification. Due to the company's bankruptcy decrement, the business with Brazil Pharma shares was suspended by B3.