PDG Realty SA, the Brazilian homebuilder struggling with a cash crunch, is considering surrendering buildings and land given as collateral to creditors ahead of a potential in-court reorganization, two people directly involved in the plan said. São Paulo-based PDG hired restructuring advisory firm RK Partners in November to come up with a rescue plan, Reuters reported. Terms of the plan contemplate giving creditors control of some assets guaranteeing debt issued by about 700 special purpose vehicles created to fund projects, the people said.

Changes in Brazil's telecom law currently under debate in the Senate are not being taken into account by debt-laden carrier Oi SA as it devises its in-court reorganization plan, Oi Chief Executive Marcos Schroeder said on Tuesday. Speaking at an industry event in Brasília, Schroeder said the imminent reforms will have no economic effect on the company's reorganization in bankruptcy court, Reuters reported. The bill had been scheduled to become law last December but was held up in the Senate after opposition legislators filed a motion to submit it to a vote by the full house.

The recent bump in oil prices isn’t enough to help Petroleos de Venezuela SA as it faces its fourth consecutive year of declining production, Bloomberg News reported. The company’s crude output is expected to fall this year as it failed to raise cash for investments and after Venezuela agreed to cut 95,000 barrels a day for six months as part of a deal struck by the Organization of Petroleum Exporting Countries and other non-members to lift oil prices, analysts say.

Brazilian politicians inflated growth estimates to facilitate an agreement between the federal government and Rio de Janeiro to resolve the state’s financial crisis, raising doubts over the viability of the deal. The projections, even if proven true, would still leave the state running a deficit by 2021, according to two people with direct knowledge of the matter who were not authorized to speak publicly, Bloomberg News reported. The deal was crucial as it sets a precedent for other states in financial difficulties.

Brazil plans to overhaul its bankruptcy law to help troubled companies survive a two-year recession that has led a record number of them to suspend debt payments, a senior member of the government's economic team said on Tuesday, Reuters reported. President Michel Temer also plans to announce new measures next week to increase productivity and bolster the construction sector, said the official, who requested anonymity to speak freely.

The largest shareholder in Oi SA will oppose any alternate reorganization plan that does not come from within the debt-laden Brazilian phone carrier, which is struggling to emerge from bankruptcy protection. In a statement sent to Reuters on Friday, Portugal's Pharol SGPS SA said it will only endorse alternatives to Oi's original reorganization proposal if the carrier's board approves changes. The statement specifically referred to a proposal made by billionaire Paul Singer's Elliott Management Corp this week.

Brazil's federal government and Rio de Janeiro state have agreed on a package of austerity measures that will partially plug the financially struggling state's anticipated $8 billion deficit. The federal government offered Thursday to defer the state's debt payments for up to three years, in exchange for spending cuts and tax increases, The New Zealand Herald reported on a Reuters story. Finance Minister Henrique Meirelles told a news conference the measures would yield around $6 billion in total. They include nearly $3 billion in spending cuts.

Brazilian pulp and paper company Fibria dropped controversial language on a 10-year Green bond on Wednesday amid strong investor pushback, sources told IFR. Fibria was one of several companies this week to drop the aggressive terms, which make it easier for borrowers to breach covenants without offering investors compensation.

A group led by creditors and Egyptian billionaire Naguib Sawiris unveiled on Friday an alternative restructuring proposal for debt-laden Brazilian phone carrier Oi SA that contemplates 37 billion reais ($11 billion) in investments over five years in exchange for a 95 percent stake, Reuters reported. The group of bondholders represented by Moelis & Co and Sawiris told Oi on Friday they would also raise $1.25 billion in new capital and take immediate control of the carrier through a debt-for-equity swap. Oi filed in June for Brazil's largest ever bankruptcy protection.

Ecovix Engevix Construções Oceánicas SA and five subsidiaries have filed for bankruptcy protection in a federal commercial court, succumbing to a debt burden of 8 billion reais ($2.4 billion) and a plunge in shipbuilding, Reuters reported. In a statement on Friday, Ecovix said Banco Brasil Plural SA and law firm Felsberg Advogados will advise it on bankruptcy protection proceedings, which will take place in a court based in the southern Brazilian state of Rio Grande do Sul. Cash at the shipbuilder is being depleted at this point, the statement said.