SAO PAULO (Reuters) - A Brazilian judge has named restructuring firm Alvarez & Marsal as judicial administrator of ethanol company Atvos’ in-court restructuring, according to a document seen by Reuters.
Atvos, a unit of industrial conglomerate Odebrecht SA, filed for bankruptcy protection on Wednesday after creditor Lone Star Funds got a court decision blocking its cash position.
The company, which has nearly 12 billion reais ($3 billion) in debt, had offered creditors a debt-for-equity swap in the beginning of the year, but failed to reach an agreement.
Odebrecht’s decision to file for bankruptcy protection of its ethanol unit illustrates how the conglomerate has been struggling after it spent the past four years at the center of one the largest corruption scandals in Latin America.
Reporting by Carolina Mandl; Editing by Cynthia Osterman and James Dalgleish