Ten months after announcing an investment of R$300 million from XP’s private equity fund, Superbac is going to court to try to renegotiate with creditors, with a temporary block on charges. The company filed a request for preliminary precautionary protection with the 1st Bankruptcy and Judicial Recovery Court of São Paulo, which is not yet a request for RJ itself, but rather an anticipation of some effects, for restructuring mediation — which, in the event accordingly, it would avoid the judicial recovery process.
The petition from the Galdino & Coelho office deals with R$654 million in debts, with banks such as BTG, Santander, Daycoval and even Banco XP, and a series of FIDCs, including Harpia, Sbk, Intrabank and Lotus.
- How much XP and General Atlantic invested in LiveMode, owner of CazéTV
- Biomm shareholder banker will sit on the pharmaceutical company’s board
The biotechnology company, created in the mid-1990s, works to replace chemicals with microorganisms for agriculture, sanitation and also the oil and gas industry and consumer goods, which gives it ESG appeal. The Superbac crisis, according to the company has told creditors, is the result of the downturn in the fertilizer market, with a drop of around 30%, in addition to interruptions in the international supply chain and also, in recent months, a slowdown in agriculture, the main client sector.
XP initially intended to invest through a Spac, which would make Superbac a company listed on the American stock exchange. But the structure of the business changed, and the capitalization was done by a private equity vehicle. The XP Private Equity II fund has already made a first markdown of the asset in the portfolio, Pipeline found. The slice for which he paid R$300 million was revalued in March this year at R$240 million.
The biotech has also received investments in the past from Singapore’s sovereign wealth fund Temasek and David Feffer, a shareholder in Suzano.
- XP fund makes sixth acquisition in assisted reproduction
- 3R goes to the ANP to demand a share from a defaulting partner in concession
One of the alternatives being discussed with creditors, according to sources close to the conversations, is a commitment to a new capital contribution from shareholders, in return for debt restructuring. The conversations also include the change of the management and leadership team, an understanding that the administration was unable to limit the effects of variations in commodity prices, with adequate hedging policies, or minimize the impacts with a new front of products and services.
Creditors and institutional shareholders believe that the company mistakenly entered the market turnaround with very high inventories, took time to make the necessary markdowns and made little cost reduction over the past year given the scenario. The company was caught on the back foot in the sector shortly after significant investments in a factory and research center in Paraná.
- Itaú sells cinemas to Cinesystem
- Enfil emerges from judicial recovery with a backlog of R$ 1.5 billion
The impact has already been felt on last year’s revenue and results. Superbac, which had revenues of R$1.3 billion in 2022, closed 2023 with R$590 million in revenue and cash burn — the operating margin was negative at 6%, Pipeline found. When contacted, the company confirmed the request for an injunction to the Court made last Friday, without additional comments.
