Brazilian airline Gol on Thursday announced that it has struck a new deal with key creditors, paving the way for the company to emerge from Chapter 11 bankruptcy protection likely by the end of June, Reuters reported. The agreement, which involves investors holding a portion of the airline's senior secured notes due in 2026, will provide $125 million in financing, according to a regulatory filing. With the new development, Gol has now secured at least $1.375 billion in financing to exit bankruptcy, the filing showed.
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Brazilian Finance Minister Fernando Haddad said on Monday that he sees greater momentum for ratification of the long-delayed trade agreement between the South American bloc Mercosur and the European Union as geopolitical and trade tensions grow, Reuters reported. Following 25 years of talks, the free trade deal, which had divided European nations, was finalized in December. But it still requires legalization, translation, and approval by member nations from both blocs.
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An investment bank has approached Azul SA creditors to drum up fresh capital to backstop an equity raise as part of the Brazilian airline’s debt restructuring plan, Bloomberg Law reported. PJT Partners has been calling the air carrier’s existing bondholders to discuss options. One possible structure, laid out in regulatory filing earlier this month, involves raising up to 900 million reais in debt instruments to be guaranteed by some credit and debit card receivables generated by its passenger airline business.
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Brazil's Voepass, a privately held airline, filed for bankruptcy protection late on Tuesday according to court documents, citing the actions of Chile-based LATAM Airlines as a major reason for its financial crisis, Reuters reported. Voepass, which claims a total debt of about 209.2 million reais ($36.78 million), has been facing difficulties since one of its planes crashed near Sao Paulo in August 2024, killing all 62 people on board.
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Nearly five months after emerging from court-supervised reorganization, Minas Gerais-based dairy producer Laticínios São Vicente is laying out ambitious growth plans, Valor International reported. During the court-supervised reorganization process — which began in 2020 and was extended due to the pandemic — the company underwent an aggressive restructuring, including a 40% workforce reduction and a portfolio overhaul. When São Vicente filed for bankruptcy protection from creditors over debts totaling R$23 million, its annual revenue was R$70 million.
Government-controlled Banco de Brasilia (BRB) only agreed to acquire the healthiest and most strategically relevant assets from fellow lender Banco Master after months of negotiations, BRB CEO Paulo Henrique Costa said in a Tuesday interview, Reuters reported. The agreement, announced on Friday and subject to review by the central bank, is still under due diligence that could eventually bring down the negotiated price of 2 billion reais ($350 million), to be paid over up to six years, he added.
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Brazil’s central bank lowered its economic growth forecast for this year, signaling further interest rate hikes will weigh on activity as policymakers fight inflation that’s speeding up further above target, Bloomberg News reported. The bank expects gross domestic product to expand 1.9% this year, down from the previous of estimate of 2.1%, according to its monetary policy report published Thursday. By comparison, analysts surveyed by the monetary authority see 1.98% growth in 2025.
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Brazil’s central bank said it was important to signal that its cycle of interest rate hikes will continue in the face of an adverse inflation outlook, according to the minutes to its March 18-19 policy meeting, Bloomberg News reported. Local food prices are high and can also drive up costs in other sectors, while services inflation has accelerated in recent readings, policymakers wrote in the minutes to the meeting. Last week, they raised the benchmark Selic by a full percentage point to 14.25%, and signaled a smaller rise ahead.
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Brazilian airline Gol said on Monday it had entered an exit financing commitment with certain investors, without naming them, as it eyed exiting chapter 11 bankruptcy proceedings, Reuters reported. Under the deal, the parties have committed to purchasing up to $1.25 billion of the $1.9 billion debt instruments to be issued as part of the process, which will be used to repay obligations under a debtor-in-possession financing.
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Brazil’s central bank raised its key rate by a full percentage point for the third meeting and cued a smaller hike at its next gathering as policymakers weigh resilient inflation and signs of an economic slowdown, Bloomberg News reported. Policymakers led by Gabriel Galipolo lifted the benchmark Selic to 14.25% late on Wednesday, the highest level since October 2016. The central bank has now tightened by 3.75 percentage points over its last five decisions.
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