Business · Companies · 6 hrs ago

Kitchens partner transferred two properties to holding company before court restructuring

Kitchens partner transferred two properties to holding company before court restructuring

Kitchens co-owner Heliane Gouvea and her husband transferred two apartments to a holding company they had set up.

The properties were valued at R$4.26 million in the documents, and are no longer directly registered to the couple.

The transfers took place while Kitchens, a high-end furniture maker in São Paulo, was already facing financial trouble.

A São Paulo court accepted Kitchens’ restructuring request, which covers R$299.9 million in debt, but the company’s recovery plan has not yet been put into effect.

Asset transfers by owners of companies in financial difficulty can be challenged by creditors, though the transfer alone does not establish wrongdoing.

The court process will require a credible recovery plan, and the owners’ personal assets may become relevant if the company later goes bankrupt and an owner is held responsible.

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What people are saying

Ronaldo VasconcelosLawyer and professor at Mackenzie Presbyterian University
In practice, it constitutes an activity of asset shielding, and creditors may challenge it if the company eventually goes bankrupt, the partner is held responsible for the bankruptcy, and her assets are held liable for the debts.
via Folha
It is a snapshot of the assets before the restructuring process unfolds and, if it leads to bankruptcy and the businessperson is held responsible for it, those assets may be used to answer for the debts.
via Folha