Paranapanema SA. – Em Recuperação Judicial (B3: PMAM3), dedicated to the smelting and refining of primary copper and the production of semi-finished copper products and their alloys in three manufacturing units, completed the suspensive conditions and payments stipulated in the Transaction Instrument on September 30, 2026. The company signed this agreement on May 8 with the eleven national and international creditors of the Global Agreement and amended it on June 29 and July 30.
The transaction extinguishes approximately R$3.94 billion, representing 92.3% of a total debt of R$4.27 billion calculated as of January 31, 2026, and restores the company to full access to its operating and non-operating assets. Paranapanema paid R$100 million using proceeds from its 11th convertible debenture issuance. It also transferred approximately R$41 million from a related-party account and R$185.3 million from a court-ordered balance resulting from a previous assignment of receivables to creditors.
The remaining R$327.4 million will be paid solely through the monetization of nine judicial receivables from Paranapanema and its subsidiary CDPC. The repayment term is 36 months and does not affect operating cash flow. Upon maturity, the debt will be extinguished, even if not fully collected, through the liquidation of the Global Agreement and all its ancillary instruments.
The creditors are Cargill, Banco do Brasil, Bradesco, Caixa Econômica Federal, BNP Paribas, Bank of China, ING, Scotiabank, Sumitomo Mitsui Banking Corporation, Zion, and BPS. The Global Agreement was signed in August 2017 and amended in December 2021 and March 2022.
Felsberg Advogados advised Paranapanema with a team led by Fabiana Solano. The firm had previously been involved in the restructuring of the Global Agreement. It also represents the company in its judicial reorganization, which involves restructuring approximately R$500 million in liabilities to suppliers and employees, and in a DIP financing arrangement of up to R$150 million per month.
On behalf of the creditors, Dias Carneiro Advogados advised Cargill and ASBZ advised Bradesco. Santos Neto Advogados represented BNP Paribas, ING, and Sumitomo Mitsui Banking Corporation, and Ricardo Amorim represented Scotiabank. Galdino Advogados advised the labor creditors in the renegotiation of approximately R$100 million in labor claims.
With the 2026 agreements with Fundo BS, AXIA Energia, and Banrisul, Paranapanema has settled more than R$ 5.1 billion in liabilities. The judicial reorganization process is ongoing.
Legal Advisors
Advisors of Paranapanema:
- Felsberg Advogados: Partner Fabiana Solano. Lawyers Thomas Felsberg, Ricardo Higashitani, André Drumon and André Milliet.
Advisors to financial creditors:
- Dias Carneiro Advogados (Cargill Incorporated).
- ASBZ (Bradesco SA).
- Santos Neto Advogados (BNP Paribas Brasil SA, ING Bank NV and Sumitomo Mitsui Banking Corporation).
- Ricardo Amorim (Scotiabank Brasil SA – Banco Múltiplo and The Bank of Nova Scotia).
Advisors to labor creditors:
- Galdino Lawyers.
