* Says Banco BVA could be liquidated 'anytime'
* Banco BVA was seized by central bank last October
SAO PAULO, March 27 Brazilian entrepreneur
Carlos Alberto Oliveira Andrade has failed to get the support of
some Banco BVA creditors for his takeover of the
bankrupt lender, just hours ahead of a central bank deadline on
Wednesday to avert its liquidation.
A proposal by Oliveira and his car dealership and financing
group, CAOA, to pay bondholders of local and dollar-denominated
BVA debt a 65 percent discount for their holdings was rejected
by a group of pension and retirement funds represented the local
branch of BNY Mellon and Drachma Capital, a CAOA statement said.
CAOA said an extension of the deadline was unlikely.
"It's hard to tell whether the negotiations will continue,
because Banco BVA could be liquidated in any moment," the
Brazil's central bank seized Banco BVA on Oct. 19, citing
deteriorating financing conditions and a breach of regulations
at the Rio de Janeiro-based lender.
Central bank moves to liquidate bankrupt lenders over the
past two years have resulted in heavy losses for bondholders,
who have repeatedly complained that their claims were treated
unequally compared with, for instance, those of state-controlled
creditors. Analysts expect the flurry of small-sized bank
failures that began in November 2010 with the demise of Banco
PanAmericano SA to end with Banco BVA.
Lenders such as Banco BVA enjoyed years of boom with the
creation of new consumer products in the mid-2000s, but too
rapid growth and worsening funding conditions in the aftermath
of the 2008 global financial crisis affected their business
models. In addition, relaxed credit risk assessments and the
inability to cope with tougher auditing controls led
PanAmericano, BVA and other rivals to bankruptcy
Calls to media representatives of BNY Mellon and Drachma
were not immediately answered.