An expert report commissioned as part of the judicial recovery process of the Fictor Group has highlighted a series of irregularities associated with the company’s subsidiaries. The report suggests that multiple subsidiaries are inactive and may not have the operational legitimacy that Fictor claims in its recovery plan. This raises crucial questions regarding which entities will be included in the restructuring process, particularly if the subsidiaries will be brought under the umbrella of the judicial recovery, a decision that could decisively impact the company's future.

Fictor has argued that including subsidiaries, such as Fictor Alimentos and Fictor Energia, in the restructuring plan might jeopardize the overall operation of the conglomerate. The holding company claims these subsidiaries are vital for generating cash flow and have their own governance structures. Yet, creditors contest this, indicating that there are signs of mismanagement and lack of clear delineation among the company and its subsidiaries, with overlapping directors across different roles.

The legal and financial implications of this expert report are significant, with Fictor declaring debts of over BRL 4.2 billion. The court's decision on whether to approve the requested restructuring based on the findings of the report could set important precedents for corporate governance and financial management standards in Brazil. The outcome will not only affect Fictor's future but may also influence the broader landscape for other companies seeking judicial recovery in Brazil's complex business environment.