Brazilian telecom group Oi SA has agreed to end all legal with a subsidiary of shareholder Pharol SGPS SA, the company said on Wednesday, paving the way for its long-awaited operating turnaround, Reuters reported. The agreement covers all litigation against the parties in Brazil, Portugal and other jurisdictions, Oi said in a securities filing.
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A Brazilian Supreme Court justice on Wednesday suspended a presidential decree establishing rules for Petroleo Brasileiro SA to sell upstream assets, casting a pall over the state-controlled oil company’s ambitious divestiture program, Reuters reported. Justice Marco Aurélio Mello granted an injunction in a lawsuit brought by the leftist Workers Party to the Supreme Court, suspending a decree signed by President Michel Temer in April, the justice told Reuters.
Brazilian airline Azul SA is not currently engaged in negotiations for a possible acquisition offer for struggling Avianca Brasil, said Azul Chief Executive John Rodgerson, Reuters reported. But he acknowledged there could be space for a possible deal with Brazil’s fourth largest airline, which filed for bankruptcy protection this week. "Their bankruptcy protection case is very recent. It is possible that, in the future, we take a look at it, but right now there is nothing,” he said, nothing he will watch the “natural course” of the case.
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Brazil’s fourth-largest airline, Avianca Brasil, has been in talks for a much-needed cash injection since before it filed for bankruptcy on Monday, German Efromovich, whose family controls the carrier, told Reuters. Efromovich, the controlling shareholder of better-known airline Avianca Holdings SA said in a phone interview on Thursday that he was negotiating with funds, which he declined to identify, Reuters reported. He also declined to elaborate on the value and whether the transaction would be debt or equity.
A Brazilian bankruptcy judge late on Tuesday granted a request by the country’s fourth-largest airline, Avianca Brasil, to suspend lawsuits seeking repossession of at least 14 of its aircraft, according to a court document, Reuters reported. Avianca Brasil filed for bankruptcy protection on Monday, after aircraft lessors sued and won initial victories in seeking to repossess the planes. The airline has 494 million reais ($129 million) in debt, according to a court filing that is under seal but was seen by Reuters.
Brazil’s fourth-largest airline, Avianca Brasil, filed for bankruptcy protection on Monday, saying its operations had been threatened by potential repossession of aircraft, which could prevent the carrier from continuing to operate, Reuters reported. The unlisted airline said in its bankruptcy filing that leasing companies seeking to take back some 30 percent of its all-Airbus fleet threatened its ability to fly some 77,000 passengers in December.
Brazilian state-run oil company Petroleo Brasileiro SA plans to raise some $26.9 billion via asset sales and partnerships by 2023 while boosting investments on the front edge of an anticipated production boom in Brazil, the International New York Times reported on a Reuters story. Petrobras intends to make $84.1 billion in investments from 2019 to 2023, above the $74.5 billion forecast in its 2018 to 2022 plan, it said in a five-year investment program unveiled on Wednesday morning.
Bondholders of Odebrecht SA’s builder unit won’t see any of the money the troubled company is getting from a long-delayed sale in Peru, one person with direct knowledge of the matter said. Of the $1.4 billion price tag of the Chaglla hydroelectric plant in 2017, Odebrecht will likely get about $640 million, Bloomberg News reported. Half of that will go to pay damages to the Peruvian government, Justice Minister Vicente Zeballos said last week. Almost all the rest will go to creditors of the project itself, the person said, asking not to be named because the matter isn’t public.
Brazilian conglomerate Odebrecht SA has hired investment bank Moelis & Co. and law firm Cleary Gottlieb Steen & Hamilton to discuss restructuring of its debt with investors, the company said in a statement on Monday, Reuters reported. Odebrecht’s engineering unit OEC and its advisers will discuss with investors restructuring of $3 billion bonds issued by Odebrecht Finance Limited. The conglomerate decided not to pay $11.5 million in interest on the 2025 bonds after the end of the 30-day grace period, the statement added.