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.

Odebrecht reaches an agreement with the main creditor banks to restructure more than R$ 50 billion in debt. The company that was one of the biggest symbols of Operation Lava-Jato currently has a debt that reaches the value of 98 billion reais. Atvos, formerly Odebrecht Agroindustrial and the third largest ethanol and sugar producer in Brazil, is expected to be sold for 13 billion reais

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The company expects to update its judicial reorganization plan today (18th) at the 1st Bankruptcy Court of São Paulo. The vote on the restructuring at the general meeting of creditors is scheduled for the next 25th.

In the process there are more than 500 creditors who sold a stake in the business and have not yet received payment. The company is being advised by RK Partners, owned by Ricardo Knoepfelmacher, and by E.Munhoz Advogados.

Odebrecht totals 34 billion in debt with the six largest banks in Brazil, Itaú, Bradesco, Banco do Brasil, Caixa, Santander and BNDES.

The agreement reached between the company and the banks was granted nine months after the group asked the court for protection against creditors, which took place on June 17, 2019.

The company reached 98 billion in debts, but 10 billion reais in guarantees for construction insurance companies and another 33 billion reais in commitments between group companies will be excluded from the total.

The Odebrecht case is the largest lawsuit of its kind ever carried out in Brazil. It is also the case with greater exposure of the national financial system.

The reorganization of Odebrecht's debt will have, in practice, two agreements: a private one, for the debts that remain outside the judicial process and the plan to be voted on properly.

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.

Odebrecht will have three years to sell Braskem and four years to dispose of Ocyan. During this period, banks do not foreclose on guarantees, even with overdue debts.

The company plans to rebuild from the original business, civil construction. The company that today bears the acronym OEC, for Odebrecht Engineering and Construction, has faced a serious reputational crisis since Operation Lava-Jato.

Ethanol producer Atvos is currently up to 11 billion reais in debt. The company's creditors meeting is scheduled for the 27th of this month, but there is the possibility of the meeting being postponed.

With the sale, Atvos will be the first company officially put up for sale by the conglomerate. Passing Odebrecht Engineering and Construction through a private restructuring to renegotiate 3,1 billion dollars in bonds issued in the international market.