By Brazil Stock Guide – Brazilian cement maker InterCement Brasil S.A., currently under court-supervised reorganization, filed on Oct. 5 a revised R$10 billion (US$1.8 billion) restructuring plan with the 1st Corporate Bankruptcy and Judicial Recovery Court of São Paulo.
According to a material fact filed with the Brazilian Securities and Exchange Commission (CVM), the plan reflects a preliminary understanding with major financial creditors and maintains existing payment terms with suppliers, ensuring operational continuity.
The General Creditors’ Meeting (AGC) is scheduled for Monday, October 6, at 12 p.m. in São Paulo, in second call, with a vote expected on the new R$10 billion (US$1.8 billion) restructuring proposal.
The plan reshapes the company’s power structure. Mover Participações S.A. — formerly Camargo Corrêa — will relinquish control of InterCement Participações (ICP), the group’s holding company, which will now be managed by a consortium of creditor banks and investment funds.
Bradesco, the main financial creditor, leads a domestic coalition that includes BTG Pactual, Itaú BBA, Santander, Banco do Brasil, and Caixa Econômica Federal.
On the international front, the creditor base comprises major global investors such as Ashmore Group, Gramercy, PIMCO, GoldenTree Asset Management, BlackRock, and Franklin Templeton. They hold the ICBV 5.75% Senior Notes 2024, totaling US$750 million (R$3.9 billion).
The plan includes a backstop agreement, securing a new-money capital injection and granting creditors substantial control over corporate governance. If approved, it would mark the end of Camargo Corrêa’s presence in the cement industry, which began in late 1960s with the creation of Cimento Cauê in Minas Gerais.
Bradesco Leads the Power Shift
Bradesco has played a central role in the restructuring. With around R$3.2 billion (US$570 million) in exposure to Mover — secured by shares in Motiva Energia (B3: CCRE3) — the bank led negotiations that resulted in the sale of Mover’s 14.86% stake to Bradesco BBI on July 25.
The deal reduced Mover’s debt and paved the way for the current restructuring plan. Bradesco now heads the creditor consortium that will oversee InterCement’s governance and financial execution.
The restructuring also includes an injection of new capital estimated at R$2.5 billion (US$450 million) through a backstop financing round.
Part of this “new money” will come from Brazilian banks, while the foreign bondholder funds agreed to convert part of their debt into equity in InterCement Participações (ICP).
This conversion will make the funds direct shareholders in the holding company and further dilute Mover’s residual stake, effectively turning the lenders into the new controlling bloc of the cement producer.
Cross-Border Restructuring
The process is coordinated by White & Case LLP, Houlihan Lokey, and E. Munhoz Advogados, spanning four jurisdictions — Brazil, the United States (Chapter 15), Spain, and the Netherlands.
The structure provides international protection against isolated enforcement actions and authorizes the issuance of new secured debentures, along with the partial sale of shares in Loma Negra (NYSE: LOMA), the Argentine subsidiary, to boost liquidity.
Proceeds will be distributed under the plan’s waterfall, prioritizing secured creditors and new-money investors.
Mover’s Role and the Residual Compensation
Although it will lose control of InterCement, Mover will not exit empty-handed. Under the consolidated plan, the holding company will transfer all its shares in InterCement Participações to financial creditors and new-money investors. In exchange, Mover retains a conditional residual right, tied to the plan’s successful execution — effectively a compensation for the loss of ownership.
This residual payment would only occur after full repayment of employee, bank, and secured creditor obligations, under the plan’s payment waterfall. Legal experts describe the mechanism as a “reverse earn-out”, meaning the former controller only receives proceeds if the company fully recovers.
How the two restructurings interlock
The restructurings of InterCement Brasil S.A. and Mover Participações S.A. run on parallel yet interdependent tracks.
InterCement’s court-supervised plan focuses on debt-to-equity conversion and fresh capital injection, while Mover’s plan tackles long-term settlement of holding-level liabilities totaling R$ 21.1 billion.
Under Mover’s proposal, creditors may opt for repayment over up to 40 years — one of the longest maturities ever proposed in Brazil — or accept immediate discounted payments of smaller amounts.
Repayment depends on the sale of Mover’s 14.86% stake in Motiva Energia (formerly CCR) and an expected R$ 900 million inflow in 2026 from a pending asset transaction still under confidentiality.
Together, the twin restructurings aim to stabilize the group’s finances and close the chapter on Camargo Corrêa’s long-standing presence in the cement sector.
What’s at Stake
Over the past two decades, InterCement expanded aggressively across Latin America and Africa, acquiring cement producers in Argentina, Paraguay, Mozambique, Egypt, and South Africa. That global push, financed largely through leveraged debt and intra-group loans, once positioned the company as one of the world’s top ten cement producers — but later weighed heavily on its balance sheet when Brazil’s economy slowed and capital costs surged.
InterCement still produces roughly 15% of Brazil’s cement, operating 23 plants, 14 concrete centers, and two aggregates units across nine states, plus operations in Argentina.
The restructuring also marks a symbolic turning point for Camargo Corrêa, once one of Brazil’s largest construction conglomerates and among the companies investigated in the Operation Car Wash (Lava Jato) probe that reshaped the country’s corporate and political landscape.
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