Lodi Valley News.com

Complete News World

Odebrecht Engenharia seeks judicial recovery and negotiates the loan

Odebrecht Engenharia seeks judicial recovery and negotiates the loan

Odebrecht Engenharia e Construção will file for judicial recovery, with US$46 million in bonds due in October, and is in negotiations with BTG Pactual (BPAC11) for a loan, according to people familiar with the matter interviewed by Bloomberg.

The company is working with legal advisors Cleary Gottlieb Steen & Hamilton and E.Munhoz Advogados, while Lazard is acting as financial advisor, sources told Bloomberg.

The bondholders appointed White & Case and Padis Mattar Advogados as legal advisors and Moelis as financial advisor, according to the sources.

Continues after ad

BTG Pactual is in talks to provide a “debtor-in-possession” loan after the bankruptcy process begins, the people said. The sources said that the loan would range between $50 million and $100 million.

Download list 10 small-cap stocks that, in experts’ opinion, have the potential to rise in the coming months and yearsAnd attend a free class

Representatives of the Economic Cooperation Organization confirmed the request for judicial restitution, without further comment. Moelis and Munhoz declined to comment. BTG and its financial and legal advisors did not immediately respond to requests for comment.

Continues after ad

OEC, which reached a US$3 billion extrajudicial recovery agreement in 2019 with creditors, has not fully recovered from Lava Jato, triggering a judicial recovery request from Odebrecht’s holding company, now called Novonor.

The Economic Cooperation Organization said in its financial statements last year that it was suffering due to reduced public spending on major projects in the wake of the pandemic and a lack of credit for infrastructure.

The company was also affected by the provisions it had to make due to the expected reduction in the recoverable value of payments from the Venezuelan government and the accounting for bonds restructured by Novonor Finance and guaranteed by OEC.

The company recorded a loss of R$741.5 million last year.

© 2024 Bloomberg LP.