Brazil's central bank raised interest rates by 50 basis points on Wednesday in a sixth straight hike that pushed borrowing costs to their highest in nearly 20 years, and left future steps open amid global uncertainties and sticky domestic inflation, Reuters reported. The bank's monetary policy committee, known as Copom, raised the Selic to 14.75% in a unanimous decision.
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Brazilian airline Gol on Thursday announced that it has struck a new deal with key creditors, paving the way for the company to emerge from Chapter 11 bankruptcy protection likely by the end of June, Reuters reported. The agreement, which involves investors holding a portion of the airline's senior secured notes due in 2026, will provide $125 million in financing, according to a regulatory filing. With the new development, Gol has now secured at least $1.375 billion in financing to exit bankruptcy, the filing showed.
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Brazilian Finance Minister Fernando Haddad said on Monday that he sees greater momentum for ratification of the long-delayed trade agreement between the South American bloc Mercosur and the European Union as geopolitical and trade tensions grow, Reuters reported. Following 25 years of talks, the free trade deal, which had divided European nations, was finalized in December. But it still requires legalization, translation, and approval by member nations from both blocs.
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An investment bank has approached Azul SA creditors to drum up fresh capital to backstop an equity raise as part of the Brazilian airline’s debt restructuring plan, Bloomberg Law reported. PJT Partners has been calling the air carrier’s existing bondholders to discuss options. One possible structure, laid out in regulatory filing earlier this month, involves raising up to 900 million reais in debt instruments to be guaranteed by some credit and debit card receivables generated by its passenger airline business.
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Brazil's Voepass, a privately held airline, filed for bankruptcy protection late on Tuesday according to court documents, citing the actions of Chile-based LATAM Airlines as a major reason for its financial crisis, Reuters reported. Voepass, which claims a total debt of about 209.2 million reais ($36.78 million), has been facing difficulties since one of its planes crashed near Sao Paulo in August 2024, killing all 62 people on board.
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A U.S. federal judge on Monday confirmed a $3.7 billion offer by Contrarian Funds' affiliate Red Tree Investments as the starting bid in an auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum to pay creditors and bondholders, according to a court filing, Reuters reported. The offer had been recommended by a court officer overseeing the auction due to its certainty of closure.
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Nearly five months after emerging from court-supervised reorganization, Minas Gerais-based dairy producer Laticínios São Vicente is laying out ambitious growth plans, Valor International reported. During the court-supervised reorganization process — which began in 2020 and was extended due to the pandemic — the company underwent an aggressive restructuring, including a 40% workforce reduction and a portfolio overhaul. When São Vicente filed for bankruptcy protection from creditors over debts totaling R$23 million, its annual revenue was R$70 million.
A Peruvian court on Tuesday sentenced ex-President Ollanta Humala to 15 years in prison for receiving illicit campaign funds from a Brazilian construction firm, making him the nation's latest former leader to head behind bars, Reuters reported. Humala and his wife were accused of receiving funds from Brazilian builder Odebrecht, now known as Novonor, in his successful 2011 election campaign. Humala's wife, Nadine Heredia, was also sentenced to 15 years in prison on Tuesday.
Telefónica has sold its Peruvian subsidiary, Telefónica del Perú, to Argentine company Integra Tec International for approximately US$ 992,000, marking its exit from the Andean country after three decades, MercoPress reported. The sale, part of Telefónica's strategy to reduce Latin American exposure, follows divestments in Argentina and Colombia. Telefónica del Perú, holding 99.3% of shares, faced a financial crisis, entering bankruptcy proceedings in February.
The World Bank is poised to announce a $12 billion financing package for Argentina on Friday, supplementing the International Monetary Fund's expected approval of a $20 billion Argentina loan deal, a source with knowledge of the plan said, Reuters reported. The Inter-American Development Bank also is expected to announce its own Argentina financing package, a second source said after Argentina's central bank announced on Friday that it will ease its foreign exchange market controls, allowing the peso to freely fluctuate within a moving band of between 1,000 and 1,400 pesos per dollar.
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