Odebrecht Takes Peru to Arbitration Over Failed Gas Pipeline Investment

Brazil construction company Odebrecht SA has taken Peru to arbitration over a failed $2 billion investment in a gas pipeline, arguing it needs to recoup the money to pay debtors in order to navigate its own bankruptcy restructuring, Reuters reported. Odebrecht, which announced the move on Wednesday, is in a precarious financial situation due to the revelation of its participation in a complex scheme to exchange bribes for public work contracts throughout Latin America. Peru’s prosecutorial agency did not return a request for comment on Wednesday. The arbitration deals with a large gas pipeline project for which Peru canceled Odebrecht’s contract in 2017, at a time of intense political backlash against the company due to corruption allegations. Read more