By Brazil Stock Guide – Companhia de Tecidos Norte de Minas – Coteminas, whose listed holding is Springs Global Participações S.A. (B3: SGPS3), secured creditor approval for its judicial recovery plan, clearing a central legal hurdle in the restructuring of the Brazilian textile group controlled by the Alencar family. The plan was approved at a General Meeting of Creditors and now awaits court ratification in Belo Horizonte.
The recovery plan authorizes Coteminas to proceed with asset sales, the creation of investment funds and a broad reorganization of liabilities, while preserving operating continuity across its industrial footprint. The court-supervised process covers Coteminas and several affiliated companies and is overseen by the 2nd Business Court of Belo Horizonte.
Asset sales and continuity
At the core of the plan is the creation of isolated productive units, or UPIs, backed primarily by industrial real estate in Minas Gerais, Rio Grande do Norte and Paraíba. These assets will be transferred to a newly created real estate investment fund and sold through competitive, court-supervised processes, with proceeds distributed according to creditor priority.
The restructuring preserves day-to-day operations and allows internal cash transfers among group companies. Coteminas is also authorized to sell non-core assets and brands, including the Mmartan home textiles label, while maintaining production at its remaining plants. Labor claims will be settled under statutory terms, extinguishing employment-related liabilities.
Ownership and governance
Coteminas is controlled by the family of the late José de Alencar, Brazil’s former vice president, and his heirs. They include Josué Christian Alencar, former president of Fiesp, the São Paulo Federation of Industries, one of Brazil’s most influential business associations.
The plan also establishes a receivables investment fund to channel payments to unsecured creditors. Unlike traditional restructurings, it does not set a fixed recovery rate or haircut. Instead, creditor payments will depend on the cash generated from asset sales over time.
Debt in the background
The court filing does not disclose a consolidated debt figure. However, based on the scale of the assets pledged and the creditor structure described in the plan, total liabilities are estimated in the range of R$ 2.5 billion to R$ 3.5 billion ($500 million to $700 million), according to a Brazil Stock Guide analysis. Final recovery levels will depend on market appetite for industrial assets as the plan is executed.
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