Brazil

Odebrecht’s construction unit OEC has signed an agreement with bondholders to restructure its debt at a 55% discount, cutting it from $3.2 billion to $1.4 billion, the conglomerate said in a statement on Friday. The bonds, which matured and were unpaid earlier this year, will have new 4-1/2-year maturities, Reuters reported. The agreement concludes the out-of-court restructuring of Odebrecht’s construction unit. Brazilian newspaper Valor Economico first reported on the signing of the agreement.

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Latin American airline Avianca will look to increase the number of passengers it can fit into a plane without enlarging its fleet as part of its efforts to overcome ongoing financial problems, its chief executive said on Thursday, Reuters reported. A video was released on social media this week showing president of the board Roberto Kriete telling employees that the airline was “broke.” The airline said the video was obtained illegally and denied that it was in a bankruptcy or insolvency process.

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Brazilian conglomerate Odebrecht SA, which has been in bankruptcy protection since June, has proposed to creditors a swap of their debt for instruments similar to equity, according to a statement issued on Monday, Reuters reported. The instruments would give creditors the rights to receive proceeds of the asset sales and future profits of the companies controlled by the conglomerate. The plan, which the statement said Odebrecht filed with the court late on Monday, has no explicit discount on the 51 billion reais ($12.4 billion) debt that is being restructured.

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A Brazilian judge on Wednesday ruled that Imcopa, one of the country’s largest processors of non-genetically modified soybeans, will no longer be able to enforce early termination of a lease agreement related to two soy crushing plants, Reuters reported. Imcopa has been going through a bankruptcy reorganization since 2014 and wants to sell the plants to pay back creditors. Last week, Imcopa terminated a 10-year lease on the two plants with brewer Cervejaria Petropolis SA, prompting the beer maker to seek legal remedies.

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Shares in Brazilian telecoms carrier Oi SA posted heavy losses on Tuesday, after media reports that its largest shareholder, GoldenTree Asset Management, is seeking to replace Oi’s Chief Executive Officer Eurico Teles, Reuters reported. Brazilian newspaper O Estado de S. Paulo reported earlier on Tuesday that GoldenTree, which holds a 14.5% stake in the company, sent a letter to the board saying Oi needs a CEO “that may execute the operational restructuring recently proposed,” the paper said, mentioning the letter was dated Aug. 16.

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Brazilian telecom carrier Oi SA reported a steepening second-quarter net loss on Wednesday, confounding expectations for a narrower shortfall, as debt servicing costs rose and the real currency weakened, Reuters reported. In a securities filing, the company posted a quarterly loss of 1.559 billion reais ($384.81 million), compared to a loss of 1.258 billion reais in the same period of the previous year. Analysts on average expected a net loss of 437 million reais, according to Refinitiv data.

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Brazilian construction conglomerate Odebrecht SA has proposed cutting the debt of its ethanol unit Atvos by between 35% to 75%, newspaper Valor Economico reported on Wednesday, Reuters reported. Citing court documents, Valor said Odebrecht proposed a 35% haircut on secured debt and 75% on the unsecured debt of its ethanol unit. Atvos debt subject to restructuring, excluding credits owed to other units of the Odebrecht conglomerate will have a global haircut of 46%, reducing its total financial debt from 10.5 billion reais ($2.65 billion) to 5.7 billion reais, the newspaper said.

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Samarco Mineracao SA, the Brazilian mining venture that hasn’t operated since a deadly dam collapse in 2015, is close to regaining a license to restart production and move closer to paying back $3.5 billion in defaulted debt, Bloomberg News reported. The license will most likely be granted within the second half of this year, the Minas Gerais state environmental agency press department said in an email. A Samarco spokeswoman declined to comment. Negotiations with creditors will resume in October following the license renewal, according to a person with direct knowledge of the plans.

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President Jair Bolsonaro will give Brazilians early access this year to as much as 30 billion reais ($8 billion) in funds normally set aside for the unemployed in an effort to spur the country’s moribund economy, The Wall Street Journal reported. A measure announced Wednesday by Economy Minister Paulo Guedes will allow Brazilian workers, starting in September, to take up to 500 reais of the money currently reserved in accounts set up by law by employers for workers who lose their jobs.

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