South America

The administrator of Brazil's Banco Cruzeiro do Sul gave bondholders a few more hours on Thursday to agree to a debt buyback that is central to saving the lender from bankruptcy, Reuters reported. Privately owned deposit guarantee fund FGC planned to analyze bondholders' responses until 1800 local time (2100 GMT), buying more time to consider takeover bids for the lender, according to a securities filing. The prior deadline on the debt buyback expired at midnight Wednesday.

Shares of Banco Cruzeiro do Sul, the Brazilian consumer lender seized by the central bank in June, rose nearly 20 percent on Tuesday, one day before deposit guarantee fund FGC is scheduled to decide whether to liquidate the bank or sell it to a rival, Reuters reported. The bank failed to receive firm takeover bids last week as concern over a potential liquidation is scaring clients and potential buyers alike, according to local media reports on Monday. Read more.

Brazil's banks abruptly slowed the pace of loan disbursements in July as caution took center stage among private sector lenders seeking to protect earnings from near record delinquencies and a drop in borrowing costs, Reuters reported. Outstanding loans in the nation's banking system rose 0.7 percent to 2.183 trillion reais ($1.06 trillion) in July from June, the slowest pace of credit expansion on a monthly basis since February, the central bank said in a report on Thursday. In the 12 months ended in July, credit grew 17.7 percent, the slowest since April 2010.

Banco BVA, a Brazilian bank specializing in credit for mid-sized companies, will replenish its capital base in coming weeks after incurring a net loss in the first half, a source with direct knowledge of the situation told Reuters on Tuesday. The bank, which is controlled by founder José Augusto dos Santos and financier Ivo Lodo, will soon receive over 300 million reais ($146 million) in fresh money, said the source, who declined to be quoted since the plans remain private. The move should increase the bank's capital base to about 1 billion reais, the source added.

Brazil's privately held deposit guarantee fund ruled out improving terms of a bond repurchase for Banco Cruzeiro do Sul, which runs the risk of bankruptcy, O Estado de S. Paulo newspaper reported on Monday. The central bank seized the bank June. Bondholders of consumer lender Cruzeiro do Sul, who stand to lose half of their investment under a repurchase program, have questioned the plan, in an indication that they will press for a sweeter offer. The plan requires the approval of 90 percent of bondholders.

Bondholders of Brazilian consumer lender Banco Cruzeiro do Sul, who stand to lose half of their investment under a repurchase program, questioned the plan at a creditors meeting on Tuesday, in an indication that they will press for a sweeter offer, Reuters reported. Investors who attended the meeting in Miami said the buyback, announced last week as part of efforts to save Cruzeiro from liquidation, treats them unequally.

Bondholders of Brazilian lender Banco Cruzeiro do Sul who stand to receive about half of their investment in a bond repurchase program are being treated in an unfair way, investors told Valor Economico newspaper on Monday. Cruzeiro do Sul was seized by Brazil's central bank on June 4 and put under the administration of privately held deposit guarantee fund FGC the same day. Under the global bond buyback plan, FGC will receive tenders until Sept. 12.

Bondholders of Brazilian troubled bank Banco Cruzeiro do Sul will receive about half of their investments as part of a bond repurchase program, an executive said on Tuesday, Reuters reported. Cruzeiro do Sul was seized by Brazil's central bank on June 4 and put under the administration of privately held deposit guarantee fund FGC the same day. FGC and Cruzeiro launched the global bond buyback plan that will receive tenders until Sept. 12, said Celso Antunes, the FGC executive currently in charge of the bank.

Brazilian electricity utility Equatorial Energia is considering ways to beef up its capital, including selling stock, to make way for the purchase of debt-laden rival Celpa, two sources with knowledge of the situation said on Thursday, Reuters reported. A share sale would comply with rules for companies that list common shares in the São Paulo Stock Exchange. Alternatives include borrowing from banks in the form of bridge loans, said one of the sources, who declined to be named because the process is in the works.

Brazilian electricity utility Equatorial Energia's potential capital injection in debt-laden rival Celpa may come up short, a source told Reuters on Wednesday. Equatorial only has 500 million reais ($248 million) available to invest in Celpa, a power distribution company that serves the northern state of Pará, said the source, who declined to be quoted because of the sensitivity of the issue. Celpa, a unit of cash-strapped power holding company Rede Energia, filed for bankruptcy protection in February. Equatorial declined to comment.