A Brazilian judge yesterday granted bankruptcy protection to engineering group Odebrecht, beginning the process of restructuring 51 billion reais ($13 billion) of debt, Reuters reported. Odebrecht, which was laid low by a corruption investigation that has rippled across Latin America, filed for bankruptcy protection on Monday, kicking off one of Latin America’s largest, in-court debt restructurings. Sao Paulo bankruptcy court Judge João de Oliveira Rodrigues named restructuring firm Alvarez & Marsal as the court administrator for Odebrecht and gave the company 60 days to present a restructuring plan for approval by creditors. Judge Rodrigues said in his decision that creditors are not allowed to sell shares in three subsidiaries, which are pledged as collateral. Odebrecht had requested the measure on Monday, arguing that its stakes in petrochemical company Braskem SA, offshore drilling firm Ocyan SA and ethanol unit Atvos are essential for the group’s restructuring.
