Odebrecht SA is rewarding some bondholders while others get burned, Bloomberg News reported. Notes issued by the holding company and backed by the construction arm plunged Wednesday after newspaper Valor Economico reported executives had told creditors that it will inevitably file for bankruptcy. The bonds are the worst performers in Brazil this year, losing more than a third of their value, as speculation mounted the scandal-tainted builder would struggle to meet its obligations.

The sell-off in dollar bonds issued by Venezuela and state-owned oil company PDVSA picked up steam on Tuesday as the spiraling crisis in the South American country triggered fresh fears of a default ahead of a multi-billion bond payment due next week, the Financial Times reported. The country’s benchmark 2027 bond fell 3 per cent to a 10-month low of 44.6 cents on the dollar. Bonds issued by PDVSA also took a leg lower, with the note due in 2035 down 2.7 per cent at 43.1 cents on the dollar.

Traders boosted their bets on a Venezuela default as state oil company known as PDVSA faces a $2 billion bond payment next week, Bloomberg News reported. The implied probability of nonpayment in the next 12 months surged to 56 percent in March from 40 percent in February, according to credit-default swaps data compiled by Bloomberg.

The Brazilian government is taking longer to finalize a decree that would allow it to intervene in debt-ridden Oi SA because it could impact other sectors beyond domestic phone carriers, an official familiar with the matter said on Monday, Reuters reported. Although the decree is aimed at phone and broadband service providers, the official said the legal change could also allow for intervention in other infrastructure sectors such as railways, highways and energy. "A legal change cannot be done only for the telecommunications sector.

Oi SA and one of its largest shareholders are pushing back against calls for a government takeover to usher the Brazilian phone company out of bankruptcy protection, Bloomberg News reported. Groups unhappy with the company’s restructuring plan are pressuring the government to intervene, even though the bankruptcy process is following its course and operations have been unaffected, said Nelson Tanure, the company’s second-largest shareholder.

Odebrecht Óleo & Gás SA, the offshore oil drilling company owned by Brazil's Odebrecht SA, has won temporary relief from investors despite pledging to honor interest payments on a bond a week after deadline, Reuters reported. In a Friday statement, the company known as OOG said investors would receive on April 7 an interest payment on the company's 6.75 percent global note due in October 2022 67576GAA5= that was due on March 1. OOG was making use of a so-called 30-day cure period expiring later on Friday to settle the payment.

The two biggest bondholder groups in Brazilian telephone operator Oi SA said on Friday they "strongly oppose" the terms of a new debt restructuring plan the company intends to present in bankruptcy court, Reuters reported. Claiming the proposed terms "were not previously negotiated with either of the Oi bondholder groups," the creditors said in a joint statement that Oi has "failed to engage" with them, nine months after filing for bankruptcy protection. Read more.

A new reorganization plan from Brazil's debt-laden phone carrier Oi SA boosted shares on Thursday, but analysts continued to focus on the need for fresh capital after a heavy fourth-quarter loss, Reuters reported. Changes to the plan revealed late on Wednesday would offer Oi's financial creditors 25 percent of its equity or convertible bonds to be called in three years, at which point they could own up to 38 percent of the company's shares.

The bitter political standoff between Venezuela’s government and opposition may have cost the crisis-torn country nearly half a billion dollars in loans from one of its last active multilateral lenders as a fourth year of recession grips the economy, Bloomberg News reported. The Development Bank of Latin America, or CAF, is said to be reconsidering whether to issue fresh loans to Venezuela -- a principal member and home to its headquarters -- due to a legal dispute between the National Assembly and the Supreme Court, according to three people with direct knowledge of the matter.

Just how much do you trust Venezuela? That’s the question to ask as $2 billion of bonds from the state-owned oil company that come due next month trade at about 95 cents on the dollar, Bloomberg News reported. Traders with nerves of steel might be able to bank a quick profit if all goes well and Petroleos de Venezuela SA honors the debt. But there’s always the chance that won’t happen. Venezuela investors have been on default watch for years now, racking up some of the world’s highest yields for dollar-denominated debt amidst the omnipresent threat that it will all go belly up at some point.