Group Maintaining Unimep Has Judicial Recovery Request Accepted
The Court of Justice of Rio Grande do Sul accepted the request for judicial recovery of the Methodist Education group, which maintains Unimep (Methodist University of Piracicaba), on May 11, 2021. The decision, issued by the 2nd Business Court, grants the institution a period of 60 days to present a restructuring plan for its debts. The measure aims to avoid the closure of the university, which has faced a significant reduction in the number of students since 2015, aggravated by factors such as changes in the rules of Fies, the economic recession, and the Covid-19 pandemic. According to Mauricio Fontoura, the financial director, the approval of the request "gains breathing space to restructure Methodist Education in order to restore our financial balance and resume growth." Unimep has R$ 15 million in labor debts with the Union.
Marina Zanaki
May 11, 2021
Acceptance of Judicial Recovery for Methodist Group
The Court of Justice of Rio Grande do Sul accepted the request for judicial recovery of the Methodist Education group, responsible for the Methodist University of Piracicaba (Unimep). The decision, issued on May 11, 2021, by the 2nd Business Court, grants the institution a period of 60 days to present its restructuring plan. This action seeks to consolidate debts and propose a payment plan, being an attempt to avoid the closure of the company in the face of financial difficulties, which led to the deactivation of the Santa Bárbara d'Oeste campus in February this year and the reduction of courses in Piracicaba.
Financial Director Highlights Breathing Space for Restructuring
The financial director of Methodist Education, Mauricio Fontoura, expressed optimism regarding the judicial decision. He stated: “With the approval of the judicial recovery request, we gained breathing space to restructure Methodist Education in order to restore our financial balance and resume growth.” The elaboration of this recovery plan will be accompanied by a judicial administrator and, at the end of the period, will be presented to the Court and creditors, with proposals for the reorganization of the group and the payment of financial obligations.
Historical Difficulties and Debts of the Institution
Methodist Education, in a statement, detailed that the significant reduction in the number of students since 2015 severely impacted revenue and caused financial imbalance. The crisis was intensified by changes in the rules of the Student Financing Fund (Fies), the recent economic recession, and more recently, the Covid-19 pandemic. O LIBERAL found that Unimep, in particular, faces R$ 15 million in labor debts with the Union, and its teachers went on strike last November due to salary delays and non-compliance with rights since 2019.
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