Debt
With a debt of R$ 11.96 billion ($3 billion) Atvos, the sugar and alcohol arm of the Odebrecht group, filed for judicial recovery on Wednesday (29). The lawsuit was filed in Sao Paulo and approved by Judge Joao de Oliveira Rodrigues Filho. The company's collapse is a major setback for the Odebrecht group and banks, especially the public banks. BNDES is its largest creditor, with R$ 4.1 billion ($1billion) in loans. Next is Banco do Brasil, with R$ 3.8 billion ($950 million), Caixa Economica Federal, with R$ 530 million ($133 million), Itau with R$ 390 million ($98 million), and Bradesco, with R$ 260 million ($65 million). With the approval of Justice, the company must present a recovery plan within 60 days. According to the report, the plan is likely to involve a significant loss for creditors because its capital structure does not contain more than R$ 5 billion ($1.25 billion) in debt. In the request for reorganization, to which Folha had access, Atvos reports that it has been negotiating a "friendly exit" with the banks, but then it was surprised by an "attack" by one of the creditors. According to the lawsuit, it is the US LoneStar fund, with which the company has a debt of R$ 1.1 billion ($276 million). Through the court, the Americans managed to receive a part of the revenue from the sale of ethanol, and this financially asphyxiated the company. With the bankruptcy, US LoneStar fund will stop receiving the money.