Photo: Eluma’s flexible tubes stand out for their quality in refrigeration.

(05/24/2021) Paranapanema, the only primary copper producer in Brazil, has completed an important stage in its debt renegotiation. Together with its principal financial creditors, the Company formalized a Memorandum of Understanding (MOU), in which the parties committed to direct their best efforts to negotiate the terms and conditions of payment whose principal amount corresponds to USD 481 million and which represents about 91.6% of the total debt of the company.

With the agreement, the Company and the banks involved in the negotiation aligned the terms, details, rights, and duties of the renegotiation. Paranapanema expects that a definitive contract will be signed with conditions to strengthen and readjust its capital structure at the end of the ongoing process.

“The signing of the agreement was the first solid step towards extending the debt profile to a realistic level with our operating cash generation” comments Luiz Aguiar, chief executive officer of Paranapanema.

About Paranapanema

Paranapanema S.A. is the only primary copper producer in Brazil, responsible for the production and commercialization of cathodes, rebars, wires, laminates, bars, tubes and copper connections and their alloys. The company ended 2020 with revenue of BRL 4.3 billion and exported its products to approximately 20 countries. The company was founded in 1961 and has been a publicly-held company since 1971, listed in B3’s Novo Mercado since 2012. It has three industrial units: Dias d’Ávila (Bahia), at the Camaçari Industrial Pole, Santo André (São Paulo) and Serra (Espírito Santo), and generates approximately two thousand direct employment.

Press Contacts

Mayara Bertacini – 11 99946-8291 | mayara.bertacini@paranapanema.com.br

Bruno Badari de Almeida – bruno.badari@paranapanema.com.br