Brazil

Privately owned Brazilian agribusiness group Itaquere has filed for bankruptcy protection to restructure 482 million reais ($127 million) of debt, according to a letter from management seen by Reuters, Reuters reported. In the letter dated March 21, the group, based in Brazil’s top grains state Mato Grosso, blames a prolonged economic crisis, along with adverse climate conditions and currency swings, for its financial woes. The letter was signed by the group but not by any particular executive.

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After defaulting in November, embattled Brazilian construction giant Odebrecht Engenharia e Construcao SA appeared determined to move quickly to negotiate with creditors, Bloomberg News reported. One month later, the company began talks with some of its largest bondholders, granting them access to confidential information and agreeing to reimburse them for some fees. The two sides held follow-up conversations as a prelude to a sitdown in New York on Feb. 27, when the Brazilian company was due to present its proposal to restructure around $3 billion of debt. Odebrecht wasn’t ready, though.

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All Avianca Brasil flights were operating normally, a spokeswoman for the carrier said on Tuesday, a day after a Brazilian appeals judge lifted an order that allowed the carrier to operate 10 of its planes despite missed leasing payments, Reuters reported. She added that the decision, which could disrupt the airline’s ability to complete scheduled flights, would be appealed. The ruling, a copy of which was reviewed by Reuters, is the latest development in a bitter legal fight between lessors and the carrier, which is going through bankruptcy protection.

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A Brazilian appeals judge on Monday lifted an order that allowed struggling carrier Avianca Brasil to operate 10 of its planes despite missed leasing payments, Reuters reported. The decision is the latest development in a bitter legal fight between lessors and the carrier, which is going through bankruptcy protection, and which could disrupt the airline’s ability to complete scheduled flights. Avianca Brasil could still seek an emergency injunction in Brazil’s Superior Court of Justice.

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Brazilian airline Azul SA hopes to take over 30 of struggling Avianca Brasil’s aircraft at cheaper lease rates, take control of two-thirds of Avianca’s airport slots and rehire many of its workers, while avoiding its crippling debts and any labor disputes, Chief Executive John Rodgerson said on Thursday. If the bid is successful, it would restructure the domestic Brazilian air travel market, reducing the number of big players from four to three, Reuters reported.

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Brazilian airline Azul SA on Monday said it will seek to buy certain assets held by struggling rival Avianca Brasil for $105 million, on the same day a local court allowed the carrier to hold onto its planes despite mounting missed payments, Reuters reported. Under the proposed terms, Azul would buy airport slots and assume some aircraft leases from Avianca Brasil but inherit none of its debts.

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Brazilian state bank Caixa Economica Federal is preparing an extraordinary provision of 7 billion reais ($1.87 billion) due to expected defaults on home loans and a loss of value in the real estate held by the bank, two sources told Reuters. The move is being done at the behest of newly appoint Chief Executive Pedro Guimaraes, said the sources, who requested anonymity to discuss private matters, Reuters reported. If the proposal goes into effect, it will reduce profit to 10 billion reais in 2018, against the bank’s expectations for 16 billion reais, the sources said.

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Brazilian conglomerate Odebrecht SA next week will ask its bondholders to accept losses of more than 70 percent from their bonds’ face value as part of a restructuring, two sources with knowledge of the matter said on Wednesday. Around $3 billion in outstanding Odebrecht Finance Ltd bonds will be affected, the sources added, asking for anonymity to disclose private plans, Reuters reported. The exact size of the haircut is still undefined, but the person said it could be between 70 percent and 80 percent of the bonds’ value.

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Samarco Mineracao SA, the Brazilian mining venture that hasn’t operated since a deadly dam collapse in 2015, will seek to reboot talks with creditors after one of its parent companies suffered an even worse disaster at its own site, according to people involved in the discussions. Last month’s deadly accident at a Vale SA tailings dam in Minas Gerais state has upended the outlook for Samarco, which is jointly owned by Vale and BHP Group Ltd, Bloomberg News reported.

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Funds controlled by activist investor Elliott Management have agreed to extend $75 million in financing to bankrupt airline Avianca Brasil, according to documents seen by Reuters on Wednesday. A term sheet signed by Manchester Securities Corp, Elliott Associates and Elliott International was submitted to the court overseeing Avianca Brasil’s bankruptcy proceedings on Monday, the document shows.

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