Argentina and its creditors are nearing a breakthrough $65 billion debt restructuring deal, a lawmaker and two sources told Reuters on Monday, the eve of a deadline for a deal that would help avert a damaging legal standoff, Reuters reported. The South American country has been at an impasse with creditors including BlackRock and Ashmore, over proposals to revamp the debt ahead of the Aug. 4 deadline. Last month, the main creditor groups had rejected the country’s “final” offer and rallied behind a counterproposal.

Brazil’s Gol Linhas Aereas Inteligentes on Friday said its daily cash burn could quadruple in the next three months compared with the second quarter, adding to heavy 2020 losses already totaling 4.3 billion reais ($823.3 million), Reuters reported. Brazil’s largest domestic carrier, like almost all airlines around the world, is reeling from the impact of the coronavirus crisis on travel. It reported a net loss of 2 billion reais in the quarter. Gol’s own forecasts show it could face a liquidity crunch soon. The airline is scheduled to repay $300 million to Delta Air Lines in September.

Emerging-market stocks and currencies are within touching distance of erasing their pandemic-fueled losses of 2020, Bloomberg News reported. Too bad the virus is still running riot, economies are shrinking and central banks are getting low on firepower. In fact, the backdrop is so grim that investors may soon start to take the view that prices are starting to defy gravity. After falling more than 30% by March, developing-nation stocks as measured by MSCI Inc.’s benchmark index are just 3% below the level at which they started the year.

Argentina’s creditors have approached several international organizations to seek endorsement for a proposal to change the rules that govern some of the country’s overseas securities, according to people familiar with the matter, Bloomberg News reported. The International Monetary Fund, the U.S. Treasury, the International Capital Market Association and the Institute of International Finance are among the organizations that have been informally approached by bondholders, said the people, who asked not to be identified discussing a private matter.

LATAM Airlines will fire “at least” 2,700 workers in Brazil, including pilots, its Brazilian arm said on Saturday, as the bankrupt carrier struggles to cut costs and cope with an industry collapse due to the COVID-19 pandemic, Reuters reported. In a statement, LATAM Brasil said it opened a voluntary redundancy process on Friday which will run through Aug. 4, after which a further minimum 2,700 jobs will be cut. The announcement followed the breakdown in talks with the SNA union over workers’ pay, the statement said. O Globo and O Estado de S.

Argentina economy minister Martin Guzman emphasized on Thursday that the country’s proposal to creditors to restructure around $65 billion in foreign debt was the maximum effort it could make, and hinted the deadline for a deal could be extended, Reuters reported The South American nation is racing to clinch a deal to avoid a messy and protracted legal standoff with creditors after it slipped into default for the ninth time in May. The deadline for a deal set by the government is currently Aug. 4.

Ecuador will extend the deadline for creditors to vote on its $17.4 billion debt restructuring plan to Monday following a lawsuit by a small group of bondholders, the finance ministry said on Thursday, Reuters reported. The South American nation originally said the vote would end on Friday, but pushed the deadline back at the request of the U.S. Court for the Southern District of New York following a suit by investment funds Contrarian Capital Management and GMO.

Argentina’s government is considering pushing back a deadline for creditors to respond to its foreign debt restructuring proposal until mid-to-late August, a source close to the negotiations told Reuters on Wednesday, Reuters reported. The cutoff for the $65 billion deal is currently Aug. 4, though the two sides are at an impasse over the value and legal terms of the final offer, with a large group of creditors rallying behind a counter proposal.

Argentina will seek a new program with the International Monetary Fund whatever the outcome of talks with holders of its $65 billion of defaulted overseas bonds, Economy minister Martin Guzman said, Bloomberg News reported. Guzman also reiterated that the country has reached the upper limit in what it’s prepared to offer creditors, though said the government would consider improving the legal terms of the offer.

Argentina’s main bondholder groups say they now represent more than 50% of the country’s overseas debt, potentially strengthening their bargaining power at a crucial time in the country’s bond restructuring, Bloomberg News reported. A group of creditors seeking to extract better terms from the government in its $65 billion debt restructuring says they have added large funds to their bloc, according to people with direct knowledge of the matter.