Avibras demands judicial recovery and lays off 420 employees

The Avibras Aerospacethe main Brazilian manufacturer of heavy systems for the defense market, today entered the range Judicial recovery. As a result, the company laid off 420 employees. The remaining employees are now 900 employees.

The process is judged on a forum crocodileIn the Paraíba ValleyIt is where Avibras Group is headquartered. This is the third time the company has renegotiated its debt in court. The procedure was previously approved in 1990 and 2008. The payback value is 570 million Brazilian riyals.

Avibras produces the Astros-2020 missile launch system, armored vehicles and electronic equipment for military use. In addition to meeting Brazilian Armed Forcesexports to countries in The Middle EastAnd the Asia And the Latin america.

According to the attorney responsible for filing the company’s injunctive recovery, Nelson Marcondes, of Marcondes Machado Advogados’ office, the pandemic was largely responsible for the company’s current moment. According to Marcondes, the company tried to hold back as much as possible not to lay off 1,500 employees, but this was not possible during 2022.

The company suffered from a change in the priority of countries around the world during pandemic. With the spread of the virus, many countries have reduced spending on defense and begun to invest more in health.

In addition, according to Marcondes, the impossibility of making voyages also complicated the situation of Avebras. After all, a significant part of the company’s sales is made through exhibitions and local contacts. They are also trained to use their devices in person.

The lawyer also explains that the company is already preparing a recovery plan and is waiting for a decision justice to proceed with operations. According to Marcondes, creditors have already been contacted.

“The company has tried to hold as much as it can, but we are already seeing the market move again, and Avibras has great prospects for the contracts being worked on,” says Marcondis.

Avibras Aeroespacial is just over 60 years old. Created by engineer Joao Verde de Carvalho Light, who was killed in 2008 when the helicopter he was driving crashed on the North Coast, an extension of a mountain range – the company leads the country’s defense industry.

The group is closely connected with the foreign market and, over the years, has faced difficulties in the actions of the government’s economic sphere. “We treat public agencies the same way we treat fruit or chicken exporters,” said Joao Verde.

On several occasions, with strong contracts in its portfolio, Avibras came close to losing hundreds of millions of dollars in international business due to the federal bureaucracy.

Astros-2 systems and their more modern version, Astros-2020, are at war, using them Kingdom Saudi Arabiain the conflict with the Houthi rebels, in To whom. Before that, in Gulf War, In 1991, they were employed by Iraq It was included in the list of priority targets of the coalition fighters led by Dr we.