Brazil's Caixa Bank Fights Bondholders' Inclusion In Odebrecht Bankruptcy

Brazil’s state-controlled bank Caixa Economica Federal SA is challenging a decision by corruption-ensnared conglomerate Odebrecht SA to include one of its units’ foreign bondholders in its bankruptcy protection filing, according to a document filed in the court case, Reuters reported. Among the 21 Odebrecht affiliates that filed for the bankruptcy proceeding two weeks ago was Odebrecht Finance, the issuer of $3 billion in bonds guaranteed by the group’s construction unit OEC. Caixa said in the document, filed late on Monday, that Odebrecht’s move to include those bondholders in the bankruptcy case was designed to reduce the voting power of other creditors. “This seems to be a strategy by Odebrecht to use the bondholders’ vote to approve a restructuring plan that most probably will be detrimental to other creditors in the same class,” the document said. Read more

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