Brazilian powerhouse Odebrecht filed for the largest reorganization procedure in Brazil, with a total debt of BRL 98.5 Billion (approx. USD 25.25 Billion).

Odebrecht started out in 1944 as a construction company, and diversified its investments into infrastructure, energy and oil & gas, among other fields. At its peak, Odebrecht employed circa 190 thousand people, with revenues as high as BRL 132 Billion (approx. USD 33.85 Billion).

Suffering the effects of Operation Car Wash (Operação Lava Jato), Odebrecht’s revenues dropped significantly at a time of heavy indebtedness, which lead to the reorganization procedure just filed.

Brazilian public banks are among the biggest creditors to Odebrecht, with approximately BRL 22.8 Billion (USD 5.85B), of which approximately 50% are unsecured loans. Foreign bondholders amount to approximately BRL 12 Billion (approx. USD 3B).

Strategically, Odebrecht opted to set aside from the reorganization procedures its more profitable operational companies, aiming at repaying its debts with the generated revenues.

Emerenciano Baggio e Associados – Attorneys at Law is prepared to give legal advice on any aspects concerning the reorganization of Odebrecht, debt disclosure, representation of creditors or other legal measures as necessary, including consequential reorganization of suppliers or vendors affected by Odebrecht´s insolvency.

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