Restructuring of the Year

Restructuring of the Year

Brazil Bonds Corporate & Sovereign Strategy

USJ Açúcar e ÁlcoolFaced with mounting debts, a record number of Brazilian companies have turned to the courts to help renegotiate bond payments and avoid bankruptcy. Some 1,600 firms requested judicial recovery in the first 10 months of 2016, up 57.6% on the same period last year, according to data from Serasa Experian. USJ Açúcar e Álcool was one that found itself in a difficult situation, but the sugar and ethanol producer wanted to avoid going to court. Instead, it executed a unique debt exchange operation that left it well-positioned to take advantage of an eventual turnaround in sugar prices. The deal employed a clause to bind any holdouts, the first time such a technique had been

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