SAO PAULO (From news reports) - Netherlands-based Paper Excellence said on Tuesday it did not accept Brazilian company J&F Investimentos SA's decision to cancel the sale of pulp producer Eldorado Brasil Celulose SA.
Eldorado said in a securities filing on Tuesday that parent company J&F had exercised its right to cancel a contract to sell 50.59 percent of Eldorado to buyers CA Investment (Brazil) SA and Paper Excellence BV.
Eldorado said in the filing J&F told it that a deadline expired to conclude the sale. CA Investment has filed an arbitration claim, Eldorado said.
Eldorado's filing did not include all of its shareholders, which also include private equity fund FIP Florestal, Paper Excellence said in its statement rejecting the cancellation of the sale.
In a court decision last week, Judge Eduardo Pellegrinelli denied a request by Paper Excellence to extend the deadline to close the deal, saying the decision should be made in arbitration.
The judge also forbade J&F and Paper Excellence to make any changes in their stakes before a decision is reached in arbitration, according to documents.