# InterCement’s $1.8 Billion Plan Hands Power to Banks and Global Funds *Creditors vote in São Paulo on restructuring that shifts control from Mover (ex-Camargo Corrêa) to a Bradesco-led group.* - Published: 2025-10-06 - Section: Insights - Tags: intercement, mover - URL: https://brazilstockguide.com/insights/intercement-1-8-billion-restructuring-plan-banks/ ![Intercement](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/10/Intercement-.png?fit=1024%2C683&ssl=1) *Intercement* **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. --- Source: Brazil Stock Guide, https://brazilstockguide.com/insights/intercement-1-8-billion-restructuring-plan-banks/