Ecovix to file for bankruptcy protection this month -report

Banco Bradesco

07/12/2016 12:24

SAO PAULO, Dec 7 (Reuters) - Brazilian shipbuilder Engevix 
Construcoes Oceanicas (Ecovix) is expected to file for 
bankruptcy protection from creditors in a local court this 
month, the newspaper Valor Economico said on Wednesday. 
    The company, based in Rio de Janeiro, has more than 6 
billion reais ($1.7 billion) in outstanding debts, according to 
Valor. 
    Ecovix did not immediately respond to requests for comment 
made via phone and email. 
    According to Valor, Ecovix's creditors include state-run oil 
company Petrobras  PETR4.SA , suppliers, China's Cosco, Norway's 
NOV and also local banks Bradesco  BBDC4.SA , Banco do Brasil 
 BBAS3.SA  and Caixa Economica Federal  CEF.UL . 
    The company's expected request for protection from creditors 
is intended to give it room to negotiate a debt restructuring 
and the sale of company assets to new investors, the paper said. 
    Ecovix's controlling shareholders and holding company, 
Jackson Empreendimentos, are expected to take most of the 
shipbuilder's assets and regroup them into a new company free of 
debts, Valor said. 
    This is expected to protect future investors from legal 
claims of creditors so that the new company can be sold off, the 
newspaper added. 
 
 (Reporting by Reese Ewing Editing by W Simon) 
 ((reese.ewing@thomsonreuters.com; +5511 5644 7721; Reuters 
Messaging: reese.ewing.thomsonreuters@thomsonreuters.net)) 
 
Keywords: ECOVIX BRAZIL/BANKRUPTCY