Brazil Appeals Court Judge Lets Odebrecht Creditors Seize Braskem Shares

A Brazilian appeals court judge has allowed bank creditors of Odebrecht SA to take possession of shares in petrochemical company Braskem SA pledged as collateral for loans they made to the corruption-ensnared conglomerate, according to a document seen by Reuters. The new injunction, granted on Wednesday in favor of Brazil’s largest lender, Itau Unibanco Holding SA, overturns a ruling banning any sale or possession of Braskem shares by banks, Reuters reported. State-controlled lender Banco do Brasil has filed a similar request. Odebrecht filed for bankruptcy protection in June, aiming to restructure 51 billion reais ($13.57 billion) of debt, in what would be one of Latin America’s largest-ever in-court debt restructurings, after the group was caught in a sweeping political corruption investigation. Read more

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