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247 – Two months after failing to repay $ 345 million ($ 1.35 billion) in debt, construction company Andrade Gutierrez has not yet managed to find an agreement to raise new funds in the market. honor the commitment. Involved in the Lava Jato operation and with 508 million reais of badets frozen by the Federal Court of Accounts (TCU), the construction company – which was once the second largest in the country – counts on the desire of creditors not to have other debts
The entrepreneur from Minas Gerais, whose owners are former allies of Aecio Neves, was the main construction company from the administrative city, the seat of the government of Minas Gerais, the work of the government of the grandson of Tancredo Neves and accused of the biggest machines to end of the Brazilian political history. Aecio's allies might be about to break because of the defeated candidate's initiative in 2014, which launched the country in the coup d'etat against Democracy and Operation Lava Jato, who drove the company and dozens of others. According to journalist Renee Pereira, the situation is dramatic. Talks with Pimco investment manager to get a loan to ease the business situation are hampered by collateral.
The initial idea was to reissue bonds of 540 million US dollars to refinance the debt owed and give new access to the entrepreneur. In May, Andrade's board of directors approved the issuance of bonds in the international market and gave the shareholders personal guarantee and the company's actual guarantees to make the transaction viable.
But with the fall of the share price of CCR, Andrade's main badet used as pledge of the new loan, the fund began to ask more from the construction company, which does not Not a lot of room to improve the conditions.
Given this, the alternative sought by Pimco is to increase the creditors' membership to a new issue, in order to reduce risk. This means setting a new deadline and a new price for the documents, in addition to a minimum amortization (plus or minus 10%) of the securities, on reasonable terms for the creditors.
This negotiation has not been easy, however, because it involves a large number of investors, sources say related to the subject. Pimco did not answer and Andrade said that he would not comment.
Last week, the rating agency Moody's downgraded the builder's rating to C – the worst rating on the scale. The rating reflects the situation of the company, which does not have enough money to cover the debt. Until September, date of the latest available data, the contractor had 665 million reais in cash. Moody's estimates that at least a portion of this amount was consumed "due to the company's negative cash flow of about 250 million reais per quarter".
The situation is not worse because the entrepreneur is in the process of liquidating his badets – managed to raise R $ 750 million with this. And he closed 4.4 billion reais in new contracts, but with terms of reception that extend over several years. Despite the new contracts of seemingly high value, the portfolio of works fell to 18.3 billion reais in September 2017, according to Moody's. In 2014, when the builders were involved in Lava Jato, the company had a portfolio of 30 billion R $.
One of the last transactions was the sale of 12.69% to Cemig – which would have generated nearly R $ 600 million for the company. Prior to this, the company had already defeated its interests in Oi and Sanepar, a Paraná sanitation company. Still on sale at the Beira-Rio stadium in Porto Alegre, and an indirect stake in the hydroelectric plant of Santo Antônio on the Madeira River – in negotiation with Chinese groups
The situation is close to being desperate
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