Wednesday, December 18, 2019

Odebrecht and banks expected to close 2019 with agreement closed on Braskem

The festive period between Christmas and New Year should be marked by meetings between executives of the five largest banks in the country and Odebrecht, to give the final seam in an agreement on the group's participation in petrochemical Braskem. The intention is to close 2019 with the completed design, with the aim of seeking approval by financial institutions until January 29. On this date, the creditors' meeting should take place to vote on the Odebrecht group's recovery plan. Empty hands. At stake is Odebrecht's 50.1% stake in Braskem, now in the hands of the National Bank for Economic and Social Development (BNDES), Banco do Brasil, Bradesco, Itaú Unibanco and Santander. This company's participation was granted to institutions as guarantees for loans made to the group, to alleviate the financial difficulties of its subsidiaries, especially the ethanol arm Atvos, also in judicial recovery. Patience. Banks could have already taken Braskem's actions, as they cannot be subjected to the protection of justice, as with other debts that are in the judicial recovery process. However, banks talk to the group to avoid further damage. The negotiations involve a period of up to three years without execution of the guarantee for Odebrecht to sell its stake. It is the maximum deadline, during which the group will be entitled to about 80% of the dividends generated by petrochemicals, limited to close to R$ 1 billion. It is expected that environmental and social problems related to the sinking of three neighborhoods in Alagoas, due to braskem's salt-yolk mine, will be solved in 2020 in order to improve the value of the company. According to the current stock price on the Stock Exchange, Odebrecht's stake in Braskem is sufficient only for the payment of debt to banks, of about R$ 13 billion.
O Estado de S.Paulo - 18/12/2019 News Item translated automatically
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