Jari Celulose filing for protection under the Brazilian protection law – ChinaTexnet.com
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Jari Celulose filing for protection under the Brazilian protection law

2019-07-22 09:25:53 Jari Celulose

In the interest of transparency and partnership with all our customers and stakeholders, Jari Celulose would like to clarify and give further information regarding recent news of our filling in the Brazilian Judicial system of a Recovery Plan.

As we have always made known, in the recent past Jari Celulose went through a very difficult mill conversion project, which took longer than planned and as a consequence, had a huge impact in the final project spending. Thus, since Jari Celulose started back its production in 2015, the company has been operating with a high level of financial pressure in its cash flow. Despite this pressure, the company was able to achieve a high level of product quality and maintain a sustainable relationship with its customer base and the Chinese market in general.

More recently, the Company was in contact with all its creditors to renegotiate its debts and was in an open process to find a strategic partner to unlock the actual and future potential of the Project, however the immediate pressure on our cash positions made it necessary to seek Judicial Protection, according to specifics laws in Brazil. As a way to guarantee continuity and sustainability, the company decided to file for protection under the Brazilian protection law, which was issued by the courts on July 17th, 2019.

The company would like to state that it´s production facility is fully operational and that it intends to continue supplying the DWP market, while cooperating with customers and working for a better future.

Jari would like to make itself available for any more information needed.

Patrick Nagem Nogueira 
 
Jari Celulose CEO
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