Giant Company Declared Bankrupt: Billions in Debt Following Termination of Recovery Process
The Commercial Court of Rio de Janeiro has ruled that the Mangius Group (Refit), a leading Brazilian oil refining and fuel distribution firm, will enter full bankruptcy proceedings after its judicial recovery process was terminated.
Judge Arthur Eduardo Magalhães Ferreira of the Commercial Court of Rio de Janeiro has accepted the request of the State Prosecutor's Office, ordering the conversion of the Mangius Group's (now Refit) judicial recovery process into an official bankruptcy. This comprehensive ruling applies to the Mangius refinery and all its subsidiaries, including the group’s distribution and chemical divisions.
The group, which had been under court-supervised judicial recovery since 2013, is currently Brazil's largest tax debtor, with massive liabilities totaling 25.7 billion reais (approximately 4.5 billion dollars).
As part of the bankruptcy order, the judge mandated the immediate freezing of all the group's bank accounts and required an updated list of creditors to be submitted within five days. The company's assets will now be assessed for sale, aiming to repay a portion of the debt and potentially allow for the continued operation of facilities under new ownership.
In his ruling, the judge noted that the company's operations were characterized by a series of investigations that exposed a systematic mechanism of tax fraud, planned tax evasion, and asset concealment. Significant payment delays to the state were recorded, alongside severe revenue losses following the closure of the refinery by the National Petroleum and Gas Agency.
Legal experts in Brazil noted that the Refit case serves as a warning, illustrating that judicial recovery processes cannot be used as a sanctuary for companies lacking economic viability. The group and its owners reserve the right to appeal the decision.
