Brazil's Caixa Requests Liquidation of Conglomerate Odebrecht

Brazilian state bank Caixa Economica Federal has filed a legal motion requesting the liquidation of engineering conglomerate Odebrecht SA, according to court documents seen by Reuters, in what could be a dramatic end to the graft-plagued company, Reuters reported. Caixa also demanded that creditors appoint new management at the conglomerate and its subsidiaries if the judge does not order the company’s liquidation. The move by Caixa adds pressure on Odebrecht to restructure its debts in one of Latin America’s largest-ever bankruptcy cases. The group filed for bankruptcy protection in June, with total debt of 98.5 billion reais. One of Odebrecht’s largest creditors, Caixa has been challenging the company’s decision to include foreign bondholders for one of its units in the case. Read more

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