The judge accepted Odebrecht's application for judicial recovery, in Brazil

The Judge of the First Bankruptcy Court of Sao Paulo has accepted Odebrecht's application for judicial recovery, bankruptcy protection

Regeneration, June 18, 2019. The judge of the first bankruptcy court of Sao PauloJoão Rodrigues de Oliveira Filho, has accepted the application for bankruptcy, bankruptcy protection, presented by Odebrechtthe group has 60 days to submit a recovery plan.

The judge also appointed the Alvarez & Marsal office as a court administrator and set a 15-day deadline for disagreements on debts incurred during the process, reported Agencia Brasil.

The decision to Oliveira Filho It establishes the suspension of all actions or executions against the companies involved, in accordance with the Law on Collections and Bankruptcy, in order to protect the activities of these companies.

Debts resulting from work sentences will be directly included in the creditors' framework, he said. This decision is made after the magistrate has recognized the interdependence of the group companies.

Oliveira Filho He also accepted the group's request to protect his interests in the companies Braskem, Ocyan and Atvos, Odebrecht He claimed that these companies are "essential goods" for their survival.

Odebrecht and about twenty companies of the group hired on Monday a legal action against the bankruptcy of the Brazilian justice to allow him to restructure his debt for a total of 13 000 144 million dollars on a total of 25 000 500 million debts bankruptcy, an action considered the largest restructuring in Brazilian history, and even the most important of Latin America, according to financial analysts.

The situation is the result of "the most serious economic crisis of recent decades," said the group in a statement to its workers. The renegotiation was approved by a court in Sao Paulo.

The company argued that bankruptcy protection was the best way to complete debt restructuring when creditors sought to seize assets pledged as collateral for non-payment.

Odebrech indicated that the company and its subsidiaries would continue their regular operations during the reorganization of the debt. Among the main creditors of Odebrecht are the banks of the BNDES, Banco do Brasil, Caixa, Itaú, Bradesco, Santander and the New York Mellon Bank, according to portal G1.