Brazil's Odebrecht to Propose Bondholder Losses of Over 70 Percent

Brazilian conglomerate Odebrecht SA next week will ask its bondholders to accept losses of more than 70 percent from their bonds’ face value as part of a restructuring, two sources with knowledge of the matter said on Wednesday. Around $3 billion in outstanding Odebrecht Finance Ltd bonds will be affected, the sources added, asking for anonymity to disclose private plans, Reuters reported. The exact size of the haircut is still undefined, but the person said it could be between 70 percent and 80 percent of the bonds’ value. The restructuring proposal, which will also include a grace period for payments and extension of maturities on the bonds, will be presented by Odebrecht’s advisers, U.S. investment bank Moelis & Co and law firm Cleary Gottlieb Steen & Hamilton, in a meeting in New York next week. Moelis and Cleary Gottlieb press representatives did not immediately reply to requests for comment. In a statement, Odebrecht said it “is keeping constructive talks with bondholders” and declined to comment further on the specifics of the restructuring proposal. Read more

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