Brazil Judge Grants Odebrecht Bankruptcy Protection

A Brazilian judge on Tuesday granted bankruptcy protection to engineering group Odebrecht, beginning the process of restructuring 51 billion reais ($13 billion) of debt. Odebrecht, which was laid low by a corruption investigation that has rippled across Latin America, filed for bankruptcy protection on Monday, kicking off one of Latin America’s largest, in-court debt restructurings, Reuters reported. Sao Paulo bankruptcy court Judge João de Oliveira Rodrigues named restructuring firm Alvarez & Marsal as the court administrator for Odebrecht and gave the company 60 days to present a restructuring plan for approval by creditors. Rodrigues said in his decision that creditors are not allowed to sell shares in three subsidiaries, which are pledged as collateral. Read more