Brazilian telecommunications firm Oi SA reported a first-quarter net profit of 679 million reais ($170 million), in a quarter its revenue continued to fall, Reuters reported. This compares to a profit of 30.5 billion reais in the first quarter of 2018 after Oi reached an agreement with creditors in an in-court debt reorganization of the company. A debt for equity swap and a new capital injection were approved last year. The capital raise was completed in January.
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Brazilian airline Azul SA on Monday made a new attempt to purchase some of bankrupt airline Avianca Brasil’s most coveted routes, offering $145 million and reversing a decision not to participate, Reuters reported. Avianca Brasil filed for bankruptcy protection in December, setting off a fierce battle for its airport slots, the rights to land and depart in crowded airports, which were expected to be sold at a bankruptcy auction that was suspended indefinitely.
Brazilian airline Azul SA has registered to participate in a bankruptcy auction for the assets of struggling carrier Avianca Brasil scheduled for next week, potentially walking back a previous decision not to participate, Reuters reported. The airline confirmed through a representative that they had registered, although he said no decision had been made whether to actually place a bid. The bankruptcy auction is set for Tuesday.
SoftBank Group Corp. is in talks to invest about $230 million in Brazilian online lender Creditas as the firm expands investments in Latin America, according to people familiar with the matter, Bloomberg News reported. SoftBank is planning to do the deal via a joint investment from its Vision Fund and newly created Innovation Fund, according to the people, who asked not to be identified as the details aren’t public. No final decisions have been made, and SoftBank may still decide against the transaction, they said. SoftBank and Creditas declined to comment.
Brazilian retailer Magazine Luiza SA said in a filing on Monday it agreed to buy online shoe retailer Netshoes Ltd for approximately $62 million, Reuters reported. Magazine Luiza offered to pay $2 a share. Rival Brazilian retailer B2W had said earlier in April it was considering the acquisition of Netshoes. Netshoes stocks ended 3.9 percent down on Monday at $2.65. Shares have fallen by 85.3 percent since its initial public offering two years ago, as the company has struggled to turn a profit.
Brazilian lawmakers delayed a vote on pension reform legislation, dealing a blow to President Jair Bolsonaro’s policy agenda and irking investors who hope the overhaul will bolster Latin America’s largest economy, The Wall Street Journal reported. Opposition lawmakers on Monday night managed to push back, likely into next week, the first of several votes needed to approve a bill proposed by Mr. Bolsonaro that imposes tougher retirement rules.
Struggling Brazilian airline Avianca Brasil had told regulators that it was permanently cancelling several routes as of Monday despite continuing to sell tickets for them on its website, according to a letter seen by Reuters. The airline, which has been fighting aircraft lessors in bankruptcy court, told civil aviation regulator ANAC in the letter sent on Friday that it was ending 48 flight frequencies — around a quarter of its capacity — due to a shrinking fleet, Reuters reported.
Avianca Brasil on Friday canceled 179 flights scheduled for the next five days after a judge denied an appeal by the carrier to hold on to nine disputed planes, marking the unraveling of the airline four months after it filed for bankruptcy protection, Reuters reported. Avianca Brasil was operating with 35 planes, a representative said, but a federal judge late on Friday ordered the return of nine planes “immediately,” denying the carrier’s last-minute appeal, according to a news release by the Brazilian court.
Brazilian retailers B2W and Magazine Luiza confirmed in filings on Wednesday they are considering the acquisition of online shoe retailer Netshoes Ltd, Reuters reported. The deal model is still unclear. When Netshoes hired Goldman, Sachs last year, the company was seeking an investor to inject cash so it could restructure its debt. Analysts at Banco Brasil Plural said in a note to clients on Thursday that a potential acquisition would be neutral for Magazine Luiza, as the acquisition price would not strongly affect cash flow.