RE: agm today9 Jan 2021 14:32
@maddog - I think so but I think the article is saying they will get nothing/very little unless a JRP can be agreed and mine is brought back into operation.
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The main argument accepted by the decision was that the guarantee did not find legal foundations or basis for its creation, which is required in case of granting in rem guarantee, as is the case of fiduciary property on movable property and rights, since, in accordance with decision, the creditors – foreign financial institutions not authorized to operate in Brazil – could not have been granted with those guarantees.
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A practical consequence of that decision for the foreign creditors mentioned above is that they went from heaven to hell, as they came from a position of preferred creditor to regular creditors. To make the situation worse, these creditors will be considered unsecured creditors in the collective insolvency proceeding, which, should the debtor in reorganization fail, could mean that this creditor might not recover anything, or at best very little of its credit.
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