(Bloomberg) -- Odebrecht Engenharia e Construcao SA, the struggling Brazilian construction firm, is filing for bankruptcy protection with a $46 million bond set to mature in October, and is in talks with Banco BTG Pactual SA for a loan, according to people familiar with the matter.

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The company is working with legal advisers Cleary Gottlieb Steen & Hamilton LLP and E.Munhoz Advogados while tapping Lazard Inc. as financial adviser, the people said, asking not to be identified because the information isn’t public. Bondholders hired White & Case LLP and Padis Mattar Advogados as legal advisers and Moelis & Co. as financial adviser, according to the people.

BTG is negotiating to provide a debtor-in-possession loan after the bankruptcy proceedings start, the people said. The loan would be $50 million to $100 million, according to the people.

Representatives for OEC confirmed the filing, without further comment. Moelis and E.Munhoz declined to comment. BTG and the remaining financial and legal advisory firms didn’t immediately reply to requests seeking comment.

OEC, which reached an out-of-court $3 billion restructuring agreement in 2019 with creditors, never fully recovered from the corruption probe known as Carwash, which led to a bankruptcy-protection filing by its holding company, Odebrecht SA, now called Novonor SA. 

OEC said in its financial statements last year that it’s struggling because of reduced public spending on big projects after the pandemic and the lack of credit available for infrastructure. It’s also been hurt by provisions it took to account for the unexpected reduction in the recovery value of payments from Venezuela’s government, and the booking of bonds restructured by Novonor Finance Ltd. that were guaranteed by OEC.

The company posted a loss of 741.5 million reais ($135 million) last year.

--With assistance from Vinícius Andrade, Leda Alvim and Rachel Gamarski.

(Updates with OEC confirmation of filing in fourth paragraph.)

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