On Wednesday, September 30, 2026, Paranapanema (PMAM3), which is under court-supervised reorganization, reported that, with the completion of the Transaction entered into on May 8, 2026 with the creditors of the Global Agreement, it definitively settled a historical debt of R$ 4.27 billion, the amount of the Total Debt calculated as of January 31, 2026. The transaction, which extinguished approximately R$ 3.94 billion, or 92.3% of the total debt, substantially reduced the company’s leverage.
To implement the Transaction, the following were transferred to creditors: the balance of a restricted account of approximately R$ 41.0 million, the court balance arising from a previous assignment of receivables of approximately R$ 185.3 million, and a cash payment of R$ 100.0 million, made on the date of the event with funds from the 11th issue of convertible debentures (debt securities that can be converted into shares). The remaining balance of R$ 327.4 million will be paid exclusively with funds obtained from the monetization of nine judicial receivables of the company and its subsidiary CDPC, within up to 36 months, without using operating cash; at the end of this period, the remaining debt will be extinguished even if not fully collected.
The company recalled that the original Global Agreement, signed in August 2017 and amended in 2021 and 2022, provided for payments through 2028, but the assumptions of maintaining supplier credit lines and selling non-operating assets did not materialize, leading to working capital losses, the filing for court-supervised reorganization in November 2022, and the early maturity of the debt in April 2024. Throughout 2026, management negotiated simultaneously with 11 domestic and international creditors, including Cargill, Banco do Brasil, Bradesco, Caixa Econômica Federal, BNP Paribas, Bank of China, ING, Scotiabank, Sumitomo Mitsui Banking Corporation, Zion and BPS, culminating in the Transaction now completed.
The completion of the Transaction adds to other deleveraging agreements signed in 2026 which, together, led to the settlement of more than R$ 5.1 billion in liabilities: R$ 849.7 million with Fundo BS, R$ 68.1 million with AXIA Energia and R$ 48.0 million with Banrisul. Paranapanema reported that the accounting effects of these agreements and of the Transaction itself are not reflected in the quarterly information as of June 30, 2026 and will be recognized in the financial statements for the periods in which they become effective.
In parallel with the liability restructuring, the company highlighted operational improvements in the 2nd quarter of 2026 compared with the 2nd quarter of 2025: net revenue of R$ 169.2 million, up 18.6% (R$ 142.7 million in 2Q25) and 18.8% higher than in 1Q26; gross profit adjusted for idle capacity of R$ 30.0 million, up 96%, with a margin of 17.8%; a 20% reduction in fixed idle-capacity costs to R$ 66.4 million (R$ 83.1 million in 2Q25); and positive EBIT of R$ 47.2 million and EBITDA (earnings before interest, taxes, depreciation and amortization) of R$ 68.9 million, compared with negative EBIT of R$ 105.1 million and negative EBITDA of R$ 79.6 million in 2Q25, figures that include the non-recurring reversal of a provision for contingencies of R$ 100.5 million.
Paranapanema also stressed that the court-supervised reorganization remains ongoing and that the full rebalancing of its capital structure still involves challenges. The company stated that it will continue to inform shareholders and the market about material developments related to the Transaction, the deleveraging agreements and its financial position.
