Braskem SA said on Tuesday controlling shareholder Odebrecht Serviços e Participações SA has placed the entire stake it has in the firm as collateral for outstanding bank loans, in a sign of Odebrecht’s challenging debt refinancing outlook.
No details on the accord between Odebrecht Serviços, a subsidiary of Grupo Odebrecht SA [ODBES.UL], and lenders were disclosed in a securities filing by Braskem.
Odebrecht Serviços, a unit of Latin America’s largest engineering group, has voting control of Braskem despite having a 38 percent stake in Latin America’s biggest petrochemical firm.
Grupo Odebrecht is selling assets and renegotiating about 35 billion reais ($10.8 billion) in loans, a little more than a year after being targeted in Brazil’s widest ever corruption probe. Marcelo Odebrecht, the family scion and former chief executive officer of the namesake group, was sentenced to 19 years in jail for his role in the corruption scandal known as “Operation Car Wash.”