By Daniel Becker Paes Barreto Pinto (Legal intern at Tauil & Chequer Advogados in association with Mayer Brown LLP) and Matheus Sousa Ramalho (Legal intern at Karim Vakil & Cruz Vizaco Advogados)
In 2007, Paranapanema S.A.(Paranapanema), a metallurgical company, took a loan from two financial institutions: Banco Santander S.A. (Santander) and BTG Pactual S.A (Pactual). A clause in this loan agreement allowed Paranapanema to pay the debt with its own stocks. However, in order to ensure that the stocks would cover the whole debt, the parties decided to enter into several collateral subordinated risk swap agreements.
Continue reading Suspension of the effects of an arbitral award by virtue of the breach of the equal treatment of the parties: the Paranapanema Case