Scandal-ridden construction group Odebrecht has filed for Chapter 15 recognition of its US$25 billion debt restructuring in Brazil, to protect overseas assets from creditors.

Four Odebrecht companies simultaneously filed their application at the US Bankruptcy Court for the Southern District of New York on 26 August, advised by Cleary Gottlieb Steen & Hamilton LLP partners Luke Barefoot and Richard Cooper.

The group’s Brazilian debt restructuring, set to be one of Latin America’s biggest, kicked off on 18 June when Odebrecht entered judicial reorganisation (RJ) proceedings at the 1st Bankruptcy Court of São Paulo after failing to sell off its petrochemical arm Braskem.

(Latin Lawyer)

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