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Decision of the Supreme Court of the Bahamas expands international scope of liquidation and authorizes search for assets outside Brazil.
The liquidation of Banco Master gained a new chapter outside Brazil following a decision by the Supreme Court of the Bahamas, made on May 26, 2026.
The country’s judiciary recognized the process conducted in Brazil and authorized EFB Regimes Especiais de Empresas Ltda. to act on behalf of the bank and other companies in the group.
The measure allows the liquidator to seek, manage, and recover assets potentially located abroad, expanding the scope of the process initiated by the Central Bank of Brazil.
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Decision expands scope of liquidation
On November 18, 2025, the Central Bank decreed the extrajudicial liquidation of Banco Master and appointed EFB as the liquidator.
The decision also affects four other companies in the group, including an investment institution and a brokerage firm.
According to the Supreme Court of the Bahamas, the Brazilian procedure meets the local legal requirements for cases of international insolvency.
As a result, the liquidator’s actions become valid in the country and can advance on assets linked to the group.
Liquidator can act in the Bahamas
The decision authorizes EFB to represent the group’s companies within the Bahamas.
In practice, the liquidator can access financial information, locate assets, recover funds, and participate in legal proceedings.
The court stated that the recognition aims to ensure a fair, efficient, and coordinated conduct of the liquidation.
Assets potentially found in the Bahamas may be incorporated into the Brazilian process, increasing the chances of payment to creditors.
Suspected billion-dollar diversion appears in the process
The decision also mentions investigations conducted in Brazil involving Banco Master.
According to the records, there are indications that Daniel Vorcaro, the bank’s controller, and others involved may have diverted at least US$ 1 billion in assets.
The suspicions include the purchase of assets with inflated values and the granting of credit with overvalued guarantees.
The document also cites investigations into the use of resources from investors and depositors, a point that led to the intervention of the Central Bank.
Timeline of the Banco Master Case
The case progressed in different stages over the past months.
November 2025: Central Bank decrees the extrajudicial liquidation of Banco Master.
March 2026: new companies of the group enter the process.
May 2026: Bahamian Justice analyzes the request for international recognition.
May 26, 2026: Supreme Court of the Bahamas recognizes the actions of the foreign liquidator.
According to the court, the liquidation in Brazil is collective in nature and seeks to gather assets for creditor payment.
International Cooperation Gains Strength
The Supreme Court of the Bahamas highlighted that the Brazilian process is compatible with the country’s legal requirements.
The court also cited the existence of supervision by competent authorities and access to the judiciary.
The judge also mentioned the principle of international comity, common in cases of transnational insolvency.
This mechanism allows countries to cooperate in the administration of assets, debts, and liquidation processes.
Creditors May Benefit
The decision indicates that the liquidator’s actions should ensure balanced treatment for creditors.
This includes creditors located outside of Brazil.
With the authorization, assets potentially found in the Bahamas may be identified and incorporated into the liquidation.
The measure may increase the chances of reimbursement within the process.
The decision does not detail potential appeals, but challenges can still be made in the higher courts of the Bahamas.
Interested parties can also appeal to the judiciary during the process.
What do you believe will carry more weight in this case: the recovery of assets abroad or the progress of investigations into the billion-dollar suspicions? Share your opinion!
