Secondary-market prices for legal claims against Brazil’s government tumbled to less than two-thirds their face value on President Jair Bolsonaro’s proposal to delay court-ordered payments on the debt, Bloomberg News reported. The securities had been trading at about 90% of face value as recently as the first half of this year, and are now closer to 60%, according to executives at banks and asset-management firms who trade the debt. The market for legal claims has been attracting investors seeking higher returns after the nation’s benchmark interest rate fell to as low as 2% last year.

Brazilian airline Gol Linhas Aereas Inteligentes reported on Tuesday a net loss of 884.6 million reais ($160.54 million) for the third quarter as traffic remained below pre-pandemic levels, Reuters reported. That compared with a loss of 872 million reais a year earlier and the company said that while demand for air travel continued to pick up in Brazil, it has still only reached 53% of pre-pandemic levels.

Airline Avianca Holdings will move its domicile to the United Kingdom and its stock will no longer be traded on the Colombian stock exchange, the company said on Wednesday, a day after a U.S. court's approval of the company's restructuring plan, Reuters reported. Colombia's flag carrier had filed for chapter 11 protection at a U.S. court in New York in 2020 amid the coronavirus pandemic. It now expects to exit the measure by the end 2021, after receiving around $2 billion in new financing under a debt-for-equity deal.

Argentina, one of the world’s most prominent defaulters, is pushing for a new way to service debt: Instead of paying creditors with cash that’s on short supply in Buenos Aires, it wants them to recognize the country’s efforts to tackle climate change, Bloomberg News reported. “We need more flexibility to honor that debt,” President Alberto Fernandez said, at a United Nations climate summit, of about $46 billion that Argentina owes to the International Monetary Fund.

Brazilian President Jair Bolsonaro said on Monday that dealing with high fuel prices in the country is his top priority right now, adding that he sees the privatization of state-run oil company Petrobras as an "ideal" move, Reuters reported. Bolsonaro told reporters during a visit to Anguillara Veneta, in Italy, that he was "unofficially" told that Petroleo Brasileiro SA - as the company is formally known - is expected to raise fuel prices at the refineries again in about 20 days. "Every bad thing that comes from Petrobras is my fault...

Avianca Holdings SA asked a judge for permission to exit bankruptcy under a plan that the airline says will eliminate about $3 billion in debt and preserve over 10,000 jobs, Bloomberg News reported. Latin America’s second-largest airline before the pandemic presented its restructuring plan at a hearing in New York Tuesday. If approved, the 102-year-old company is eyeing an exit from bankruptcy this year. U.S. Bankruptcy Judge Martin Glenn appeared to side with the company when a handful of objectors claimed the proposal wrongly favored some creditors over others.

Brazil’s central bank is poised to deliver its biggest interest rate hike in nearly two decades as plans for greater public spending risk jeopardizing efforts to bring inflation down to target, Bloomberg News reported. Most economists agree on the need to step up an already aggressive monetary tightening campaign, but are divided over how dramatic the increase will be. The majority of the 49 analysts surveyed by Bloomberg expect the benchmark Selic to jump by 150 basis points to 7.75%.

Latam Airlines Group’s chief executive wants to steer his company out of bankruptcy next year with a shrinking carbon footprint and lower costs that can help it grow in a travel market still recovering from the coronavirus pandemic, Bloomberg News reported. Roberto Alvo said that Latin America’s largest air carrier is making progress on a financing plan that it will submit to a judge next month, putting it on track to exit bankruptcy protection as soon as the first half of 2022.

Chile’s Senate Constitution Committee approved a proposal for a fourth round of early pension withdrawals that would pump as much as $20 billion into one of the world’s fastest-growing economies, Bloomberg News reported. The committee voted 3 to 2 in favor of legislation on Tuesday despite growing opposition to the measure. The bill now moves to the Senate floor, where it faces difficult odds of passing. Three prior rounds of withdrawals have injected some $49 billion into the economy, buoying consumption and inflation amid the coronavirus outbreak.