São Paulo Court Grants Fictor Judicial Recovery Under Watchdog Oversight

Overview

• Fictor won court protection from creditors in São Paulo, with PwC named as a monitoring agent and the court administrator Laspro to oversee the case as the company prepares a recovery plan within 60 days.
• The filing lists R$4.2 billion in debts and 13,041 creditors, mostly individual savers who bought fixed‑income products marketed with returns of up to 2% a month.
• The Paraná civil court in Curitiba ordered a provisional freeze of up to R$215,000 via Sisbajud on five partners and nine linked firms, and allowed searches of vehicles and property if cash cannot be located.
• The judge cited signs of abusive use of company structures and possible commingling of assets, and noted a prior March 10 order that blocked R$200,000 after an investor using an SCP contract said payments stopped; an SCP lets someone fund a venture managed by another party without appearing publicly as a partner.
• Lawyers say freezes obtained outside the restructuring could be pulled into the court process to keep creditors on equal footing, and similar investor suits are already underway in at least three states following the failed Banco Master bid and ensuing probes.