South America

Avianca Brasil on Friday canceled 179 flights scheduled for the next five days after a judge denied an appeal by the carrier to hold on to nine disputed planes, marking the unraveling of the airline four months after it filed for bankruptcy protection, Reuters reported. Avianca Brasil was operating with 35 planes, a representative said, but a federal judge late on Friday ordered the return of nine planes “immediately,” denying the carrier’s last-minute appeal, according to a news release by the Brazilian court.

Read more

Brazilian retailers B2W and Magazine Luiza confirmed in filings on Wednesday they are considering the acquisition of online shoe retailer Netshoes Ltd, Reuters reported. The deal model is still unclear. When Netshoes hired Goldman, Sachs last year, the company was seeking an investor to inject cash so it could restructure its debt. Analysts at Banco Brasil Plural said in a note to clients on Thursday that a potential acquisition would be neutral for Magazine Luiza, as the acquisition price would not strongly affect cash flow.

Read more

Brazilian fertilizer company Fertilizantes Heringer SA proposed to repay unsecured creditors 20 percent of amounts owed them and to sell seven non-operating plants, as part of its restructuring plan, according to a securities filing on Wednesday, Reuters reported. The company filed for bankruptcy protection in February, closing nine of its plants in Brazil and laying off workers, as its liquidity situation deteriorated. Heringer’s unsecured creditors hold 1.7 billion reais of the company’s debt, the document showed. Secured creditors would be paid 60 percent what they were owed.

Read more

BNP Paribas on Wednesday denied having sued Astaldi, adding that it was the Italian builder that had launched legal action against the French lender on March 13, Reuters reported. The bank said it and other lenders were sued by Astaldi over the payment of an international guarantee issued by BNP Paribas at the request of the Italian group in favour of National Bank of Canada. The legal move was “totally groundless”, BNP added. Earlier on Wednesday, Italian daily Il Messaggero reported that BNP had sued Astaldi over an alleged breach of a contract in Canada, complicating its rescue plan.

Read more

Terra Forte, one of the largest Brazilian coffee exporters, has filed for bankruptcy protection in a Sao Paulo state court, lawyers for the company said on Wednesday. Law firm Freire, Assis, Sakamoto e Violante said Terra Forte was looking to restructure 1.1 billion reais ($288.2 million) in debt, Reuters reported. It also said the exporter was seeking to raise 60 million reais in working capital from investors to maintain operations. Terra Forte is a well-known player in the international coffee market.

Read more

The global economy has slowed sharply since last summer and will rely on a “precarious” boost from a few emerging markets to reverse the loss of momentum, the IMF has predicted in its latest economic forecast, the Financial Times reported. Cutting its outlook for 2019 and 2020, the fund judged that advanced economies would “continue to slow gradually” into next year while emerging economies would play a more positive role, led by an end to crisis conditions in Turkey and Argentina and stabilisation in the all-important Chinese growth rate.

Read more

A Brazilian appeals court ruled on Monday in favor of several Avianca Brasil lessors, granting them the right to repossess over 15 planes, legal records show, amid a renewed push to retrieve the Airbus jets from the struggling airline, Reuters reported. Avianca Brasil filed for bankruptcy in December after falling behind on airplane lease payments and has managed to hold on to most of its planes amid a dizzying number of court cases.

Read more

Creditors led by hedge fund Elliott Management approved on Friday a restructuring plan for bankrupt airline Avianca Brasil, hours after the country’s antitrust regulator announced preemptively that the plan could run afoul of competition laws, Reuters reported. The regulator, known as CADE, said on Friday morning that it could block the plan, which Avianca Brasil hopes could raise some $210 million. The carrier filed for bankruptcy protection in December.

Read more

Brazilian airline Avianca Brasil plans to split into seven units that it will auction off separately, with rivals LATAM Airlines and Gol Linhas Aereas Inteligentes both planning to bid for some of those parts in a bankruptcy auction, Reuters reported. The plan to split up the carrier, filed in a Brazilian court on Wednesday, is a significant departure from a previous proposal and adds fresh competition for some of the most-coveted airport slots in Brazil. But it also shuts the door on a previous offer by competitor Azul SA.

Read more

Brazilian energy firm Eneva SA announced a secondary offering of 49.97 million shares in a securities filing on Wednesday, confirming an earlier Reuters report. The firm, which owns gas-fired power plants and natural gas exploration and production assets in northeastern Brazil, said shareholders Itau Unibanco Holding SA, Uniper Holding GmbH, Banco BTG Pactual SA, Banco Pine SA , and Dommo Austria GmbH, a unit of Brazil’s Dommo Energia SA, plan to sell shares in the offering, Reuters reported.

Read more