Creditors of Brazil's Odebrecht Ethanol Unit Approve Restructuring Plan

Creditors of Odebrecht’s ethanol unit Atvos have approved a restructuring plan, the Brazilian firm said in a statement late on Wednesday, Reuters reported. Under the plan, Atvos expects to reduce its net debt to three times its earnings before interest, tax, depreciation and amortization, a gauge of operational profit known as EBITDA, from the current six times, as it will transfer 46% of its debt to a new vehicle. It will start paying small suppliers in 90 days. Remaining creditors will start receiving partial payments in 2022. Atvos offered its financial creditors bonds with rights to access the company’s dividends and also with shares and fixed assets as collateral. Rates of approval went from 77% to 100%, depending on creditor class. Brazil’s largest banks - development bank BNDES, state-controlled Banco do Brasil SA, Itau Unibanco Holding SA and Banco Bradesco SA - approved the plan. Financial creditors will be able to convert between 46% and 61% of their credit in bonds, the company added. Read more

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