The Superior Court of Justice (STJ) in Brazil upheld the bankruptcy of Buritirama Mineração, rejecting an appeal by the company's owners. The initial bankruptcy ruling was made by the São Paulo State Court (TJSP).
Buritirama argued that the bankruptcy was flawed due to issues with the service of legal notices, claiming that due to the pandemic, employees were working remotely and notices were not received at the correct addresses. They also stated that a request for judicial recovery had been made and that the creditor lacked standing to pursue bankruptcy.
The STJ rejected Buritirama's appeal, affirming the bankruptcy ruling. The court found no evidence to support claims of invalid service of process or lack of creditor interest.
The bankruptcy was based on a debt exceeding R$27 million, stemming from a decision by the 1st Business Law Chamber of the TJSP, in a case brought by C. Steinweg Handelsveem.
Buritirama, the world's third-largest and Latin America's largest manganese miner, employs 3,500 people. The bankruptcy's impact on these employees is a significant concern.