(09/26/2017) Paranapanema has successfully concluded the process of capital and shareholder restructuring on Friday, 22nd, when a debt settlement of R$ 360 million in Convertible Bonds was completed. In ten days, starting on Friday, the 1st series of bonds will be converted into company shares. Paranapanema has also completed issuing new shares, with a contribution of R$ 352 million in the company. This amount, in addition to the conversion of bonds, totals a capitalization of R$ 712 million.

The capital increase included the shares of current and new shareholders, reaching a new corporate arrangement with private capital prevalence. By restructuring, Paranapanema will focus on the full resumption of its operational activities and on the generation of value to its shareholders and other stakeholders.

Renegotiation process with creditors had been in progress since May 2016. Since then, the company had signed standstill agreements, which suspended the collection of interest and the payment of the principal debt, as well as prevented its judicial collection. On August 8, the company executed an agreement with 11 creditor banks, which accounted for 84% of the debt, for a total of US$ 616 million. Under the agreement, the company will be able to pay its commitments in terms of up to seven years, including the grace period.

Paranapanema achieved, based on numbers not yet audited, a reduction of 28% and a 94% extension of its financial debt, when compared to the 2Q 2017 financial statements.

The Paranapanema Chief Executive Officer, Marcos Câmara, affirms that the conclusion of this stage symbolizes the beginning of a new phase in the history of the company. “The agreement with Glencore, the process of capitalization and debt rescheduling are the main efforts undertaken by the company’s management, shareholders and creditors, and will successfully implement its business plan and growth strategy”, said the executive.

About Paranapanema

Paranapanema is the largest non-integrated Brazilian producer of refined copper and copper products (rebar, drawn wire, laminates, bars, pipes, connections and their alloys).  The company has three industrial plants, one primary copper unit located in the municipality of Dias d’Ávila (BA), and two copper products plants and their alloys, installed in Santo André (SP) and Serra (ES). It also has a distribution center in Rio de Janeiro, in the city of Itatiaia. With 2,000 employees, Paranapanema owns well-known brands in the Brazilian market such as Eluma and Caraíba.