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Considered the largest judicial reorganization in Brazil, Odebrecht has a request approved, valued at more than R$ 83 billion in debts by the justice of São Paulo
Yesterday (27/07) the largest judicial recovery request in Brazil was ratified by the Justice of São Paulo, that of Odebrecht and 11 companies belonging to the group valued at more than R$ 83 billion in debt. Odebrecht will have to sell its main companies, petrochemical company Braskem, ethanol producer Atvos, rig operator Ocyan and its stake in Saesa, the hydroelectric plant of the same name.
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Odebrecht's request for judicial recovery had already been approved in April of this year by the meeting of shareholders and creditors and was awaiting approval so that it could start the restructuring process.
To honor its debts, the company will have to sell its main companies: the petrochemical company Braskem, the ethanol producer Atvos, the rig operator Ocyan and the stake in Santo Antônio Energia (Saesa), the hydroelectric plant of the same name.
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If the amount of the judicial reorganization is confirmed, this would be the biggest process in Brazil, surpassing that of Oi, in 2016, estimated at BRL 64 million.
As a next step, Odebrecht will proceed with a process to try to recover financially, with a longer term for paying creditors and tax debts. The Justice will monitor the progress of the judicial recovery for 2 years.
The request for judicial recovery was presented to the Bankruptcy Court of the São Paulo TJ in June last year. At the time, only public banks had more than R$ 22 billion to receive from the company.
Judge João de Oliveira Rodrigues Filho, from the 1st Bankruptcy and Judicial Reorganization Court of the Central Civil Court in São Paulo, who will appoint a court administrator to monitor the process, was responsible for analyzing the restructuring of the Odebrecht group.
Lava Jato – Odebrecht and the corruption scandal
In addition to debts with creditors, Odebrecht and its subsidiaries accumulate debts with the courts and the public administration in cases of administrative impropriety and corruption.
The company is investigated by Operation Lava Jato, the Federal Police and the Federal Public Ministry, for paying bribes to politicians from different parties and for funding electoral slush funds.
Several company executives signed plea agreements, offering information that led to the development of other PF operations.
