Cotribá cooperative enters extrajudicial liquidation with R$ 1.4 billion debt

The Cotribá Agricultural Cooperative, based in Ibirubá, Rio Grande do Sul, has approved its voluntary dissolution and the start of a continuous extrajudicial liquidation process. This decision follows a ruling by the Rio Grande do Sul Court of Justice (TJ-RS) that denied the entity's request for judicial recovery, citing that its legal nature as a simple society prevents it from using the Bankruptcy and Reorganization Law.

The cooperative faces an estimated total liability of approximately R$ 1.427 billion, distributed among more than 20,000 creditors, including financial institutions, investment funds, and rural producers.

Unlike traditional judicial liquidation aimed at immediate extinction, this model allows for operational continuity. Cotribá intends to maintain its 60 business locations throughout the reorganization to continue serving rural producers. The current president, Sergio Strentzke, will serve as the liquidating president to manage assets and negotiate with creditors. The legal process allows for the suspension of debt collections for 12 months, which may be extended for another 12 months, providing a window to reorganize the entity's finances.