Corrupt Brazilian Construction Giant Odebrecht in Financial Trouble

The president of the Banco do Brasil, Rubem Novaes, said on June 5th that any petition for judicial restructuring by Odebrecht is a growing concern for financial institutions. The company's existence depends on its subsidiary Braskem.

By Contributing Reporter

SÃO PAULO, BRAZIL - Odebrecht's failure to sell its controlling stake in petrochemical company Braskem SA to LyondellBasell Industries NV and a shortage of cash are complicating the task of restructuring R$80 (US$20.67) billion in debt owed by the conglomerate, three sources with knowledge of the matter said to Reuters.

The conglomerate, called by the British BBC "Corruption Incorporate" because of its leading involvement in corruption scandals all across Latin America, was counting on a Braskem "dividend" to service its debt.

But a court order in April relating to environmental damage by the . . .

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