Brazil's Grupo Dolly faces bankruptcy petition over R$15.7 billion debt

The Federal Attorney General's Office (PGFN) and the São Paulo State Attorney General (PGE‑SP) filed a joint petition to declare bankruptcy for the companies that make up Grupo Dolly, the well‑known Brazilian soft‑drink maker. The petition, submitted to the 2nd Bankruptcy Court in São Paulo, cites a total active debt of R$15.746 billion, comprising R$8.3 billion owed to the Union, R$7.4 billion to the state of São Paulo and about R$15 million to the FGTS.

The authorities allege that the debt stems not only from financial difficulties but from a deliberate “blindagem patrimonial” strategy. They claim the group used its 2018‑initiated judicial recovery process for almost eight years to suspend tax enforcement actions, create new entities and move assets, and then abandoned the recovery plan in May to pursue an extrajudicial restructuring, which the prosecutors say was intended to evade the legal requirement of fiscal regularity.

The bankruptcy request seeks to gather and manage the group’s assets under a judicial administrator, investigate the alleged irregularities, hold administrators accountable and potentially sell the business to repay creditors, while preserving jobs and allowing the company to continue operating under new management.