Insurers Seek To Avoid Impact Of Odebrecht Bankruptcy Protection

Several insurers have reportedly begun taking action to avoid potential losses from the bankruptcy protection process for the holding company (ODB) of Brazilian construction conglomerate Odebrecht, BNamericas reported. Earlier in the week, ODB and 21 of its subsidiaries filed the bankruptcy protection request with 98.5bn reais (US$25.2bn) in debt. The request was accepted by a local court and became the country’s largest bankruptcy protection proceeding ever, surpassing Brazilian telecom operator Oi, which filed a request in 2016 with a debt pile of more than 64bn reais. ODB was granted 60 days to present a debt restructuring plans for its creditors. Around 4.8bn reais of the debt is linked to insurance contracts that belong to insurers such as AIG, Liberty, Chubb and JMalucelli, according to a report in local business daily Valor Econômico. To avoid losses, the insurers are seeking to suspend the bankruptcy protection process that concerns the insurance contracts, the report said. Read more