Brazilian construction and engineering group Odebrecht is changing its leadership amid ongoing debt restructuring and difficulties to obtain new contracts, BNamericas reported. Chairman and ally of founder Emilio Odebrecht, Ruy Sampaio, will replace current CEO Luciano Nitrini Guidolin as the expected conclusion of the conglomerates' debt restructuring will also end a cycle in the company, an Odebrecht spokesperson told BNamericas.
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Foreigners have withdrawn from Brazilian equities at a record pace this year, amid persistent scepticism from global investors about the country’s economic recovery, the Financial Times reported. In total, foreign investors have pulled a net R$15.2bn (US$3.7bn) out of the country’s stock markets this year, data from the São Paulo stock exchange show. The São Paulo stock exchange has surged higher, with the benchmark Bovespa up more than 25 per cent this year. But the persistent withdrawals from foreign accounts show how heavily this rally depends on local investors.
The left is back in control in Argentina now that Alberto Fernandez has taken office as president, succeeding the pro-market Mauricio Macri. The Peronists may have returned with an orderly transition, but Fernandez faces an economic and financial crisis and is on a collision course with the IMF, The Conversation reported. This stems from the “turbulence” of April 2018, in which the peso devalued 11% against the US dollar in less than a week amid rampant inflation, a recession, high unemployment and wider worries about emerging markets within the global economy.
Argentina, the world’s biggest seller of processed soybean meal and oil, raised export taxes on Saturday as the government seeks to fund spending under new President Alberto Fernandez, Bloomberg News reported. After the peso’s 37 percent slump this year, his administration is replacing a levy of 4 pesos per dollar for many exports with a fixed charge of 9 percent, according to a decree in the official gazette.
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The IMF is waiting for the details of the new Argentine government’s economic plans to review its $56 billion credit line, its chief spokesman said, Bloomberg News reported. “I don’t have anything on dates or planned meetings,” with Argentine officials over the $56 billion loan, the International Monetary Fund’s Gerry Rice said yesterday. Economy Minister Martin Guzman had said on Wednesday that he had held a preliminary meeting with IMF Managing Director Kristalina Georgieva before taking office.
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Brazil’s Odebrecht creditors have delayed the vote on the conglomerate’s new bankruptcy plan to Dec. 19, according to representatives for the conglomerate, Reuters reported. The company said in a statement that 20 of the 21 subsidiaries have agreed to delay the vote on the restructuring to Dec. 19. Creditors of one last subsidiary, Atvos Investments, are still discussing the delay. Odebrecht presented the new restructuring plan to creditors yesterday.
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Avianca Holdings SA said yesterday that it reached agreements with creditors and secured fresh financing, completing a restructuring of its debt that will free up cash as it pursues a turnaround plan, Bloomberg News reported. The Bogota-based carrier received approval from major creditors with whom it had been negotiating since June, when it began to defer principal payments and announced a “re-profiling” of its debt. The company said it secured extensions of bank lines, letters of credit, and other agreements with more than 125 creditors and suppliers.
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Argentina President Alberto Fernandez said that the country is willing but unable to pay its debts under current conditions and needs the economy to grow again before meeting its obligations, Bloomberg News reported. The government will seek “constructive and cooperative” dialogue with the International Monetary Fund and bondholders to address the debt load, Fernandez said, without giving additional details. The outgoing administration of Mauricio Macri left Argentina in “virtual default,” he said.
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A Brazilian bankruptcy judge has pushed back the sale of two soy crushing plants after U.S-based grain trader Bunge Ltd alleged the seller provided insufficient information about the assets, according to court filings seen by Reuters on Friday. The auction of the two plants by privately owned Imcopa group, rescheduled to Feb. 17 from Dec. 4, is part of the seller’s plan to emerge from bankruptcy. Imcopa and a court-appointed judicial administrator agreed to cancel this week’s auction of the two strategic plants in Paraná state, court documents showed.
Argentine soy crushing giant Vicentin is struggling to repay over $350 million in debt and some plants are likely to halt production while it seeks relief amid an economic slowdown in the country, a source close to the firm said on Thursday, Reuters reported. The grains crusher, Argentina’s top exporter of processed soy last year according to government data, said it had been hurt by increasing financing costs and rising country risk, and was looking at how to meet its obligations.