trending Market Intelligence /marketintelligence/en/news-insights/trending/7uTCEq3suG0Ir0BC7s--Qg2 content esgSubNav
In This List

Brazil's Caixa files legal complaint against Odebrecht's bankruptcy

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Brazil's Caixa files legal complaint against Odebrecht's bankruptcy

Caixa Econômica Federal is looking to block the judicial recovery proceedings of scandal-plagued construction and engineering conglomerate Odebrecht SA, Folha de S.Paulo reported, citing a document from the state-run bank.

The bank, which is one of Odebrecht's largest creditors, filed a complaint in a São Paulo court on Sept. 23, saying that technical irregularities in the bankruptcy process and a lack of information are hindering a thorough evaluation of Odebrecht's recovery plan.

Additionally, Caixa's complaint reportedly claims "there is no justification" for Odebrecht's decision to include all of its non-operating units in the recovery process while excluding its revenue-generating subsidiaries.

Anonymous sources linked to the Odebrecht group told Folha that Caixa's complaint is unlikely to impede the judicial recovery process.

An estimated 51 billion Brazilian reais of debt will be restructured under Odebrecht's bankruptcy, which was filed in June after years of involvement in corruption and bribery investigations.

Earlier in 2019, Caixa President Pedro Guimarães said the bank had already provisioned 95% of the debt it is owed from Odebrecht. Other Brazilian banks have also provisioned against their exposure to the company.

As of Sept. 26, US$1 was equivalent to 4.15 Brazilian reais.