By Newsfeed/Valor Econômico
SÃO PAULO, BRAZIL – The board of the once all-powerful and deeply corrupt conglomerate Odebrecht is expected to give a green light this Monday, June 17th, to filing for bankruptcy protection from creditors, writes Brazilian news outlet Valor Econômico.
It would be Brazil’s largest-ever judicial recovery, greater than that filed in 2016 by telco Oi, with a R$64 (US$16) billion debt under restructuring.
According to Valor, Odebrecht and its financial and legal advisors are still working on the initial petition that will list the debts, sources say.
The largest creditors included in the bankruptcy proceedings are the six largest Brazilian banks, holders of bonds issued overseas and backed by construction arm OEC (Odebrecht Engenharia e Construção) and Peru’s credit agencies, especially insurers.
Since November 2018, Odebrecht has been trying to restructure the holding company’s debts and some subsidiaries. The group has focused on settling legal disputes after Operation Car Wash, through leniency agreements in Brazil and in other countries, and also on building up a structure of governance and internal controls.
(Source: Valor Econômico Brazil)