Eike Batista Requests Toffoli’s Recusal Citing Ties with BTG

Eike Batista’s legal team has filed a request for the recusal of Minister Dias Toffoli from a case involving significant debentures linked to one of Batista’s former companies. This legal matter is currently under confidentiality, but it involves assets that serve as collateral to secure Batista’s obligations, including an R$ 800 million fine associated with a plea deal with Brazil’s Federal Public Ministry (PGR).

Eike Batista and the Debentures Case

The debentures, issued by Iron X Mineração S.A., formerly known as Anglo Ferrous Brazil S.A., represent a substantial economic asset in the ongoing dispute. In December 2024, Toffoli estimated the value of these debentures at R$ 612 million. However, Eike’s defense argues that the true worth is around R$ 10 billion, based on projected royalties over 25 years.

Legal Proceedings and Allegations

• The defense claims that Toffoli undervalued the debentures.
• Toffoli granted the investment fund Itaipava FIM the right of first refusal for the asset.
• Following this decision, Itaipava FIM approved a quota issuance valued at R$ 613 million.
• Batista’s lawyers assert that BTG Pactual funded this investment fund, questioning its legitimacy.

The defense has appealed Toffoli’s decision, and the PGR is contesting the approval to sell the assets securing the fine. Both appeals are under virtual consideration by the Second Panel of the Supreme Federal Court (STF), with resolutions expected by February 6.

Concerns Over Impartiality

Eike’s legal representatives argue that the BTG Pactual, chaired by André Esteves, has gained a dual advantage from Toffoli’s ruling. By purchasing the debentures at a significantly reduced price, BTG benefits, as funds are directed back to the bankrupt estate of MMX, where BTG is a favored creditor.

Evidence of a close personal relationship between Toffoli and Esteves has surfaced, including a video from January 2023 showing the banker visiting Toffoli at the Tayayá Resort in Paraná. The lawyers believe this connection poses a substantial risk to Toffoli’s impartiality in the case.

They emphasize that the nature of the interaction reflects an “intimate friendship” that exceeds a mere professional relationship, raising concerns about fair judgment in the ongoing proceedings.

Despite increasing calls for Toffoli to withdraw from the inquiry into alleged financial fraud linked to Banco Master, the minister has dismissed the possibility of stepping aside. Attempts to reach Minister Toffoli and BTG Pactual for comment have gone unanswered.