By Brazil Stock Guide – Odebrecht Engenharia e Construção, a unit of Brazil’s Novonor group, has formally exited its court-supervised restructuring after a ruling by the São Paulo bankruptcy court confirmed that the company fulfilled the obligations of its recovery plan.
The procedure was closed Wednesday (11) by Judge Paulo Furtado de Oliveira Filho of the 2nd Bankruptcy and Corporate Restructuring Court after the court determined the company had complied with the restructuring terms approved by creditors.
In the ruling, the judge said the process could be closed “due to the fulfillment of all obligations set forth in the Judicial Recovery Plan due up to the present moment, and the full implementation of the conditions established both in the plan and in the DIP financing instrument.”
He also noted that “any occasional divergences regarding payment options have been addressed jointly with the debtors, and there is no event of default capable of preventing the closure.” According to the decision, disputes related to the verification or challenge of claims may continue in separate proceedings even after the main restructuring case has been closed.
In a statement, Odebrecht Engenharia e Construção said the conclusion of the restructuring represents progress in its broader financial reorganization. “This is another milestone for the company’s continued strengthening, reflecting the trust of clients, employees, partners and society,” the company said.
$4.6 billion debt restructuring
The construction company filed for court protection in 2024 in order to reorganize an estimated $4.6 billion in debt, largely composed of international bonds issued by Odebrecht and guaranteed by the engineering unit.
Creditors approved the restructuring plan in February 2025, and the court formally ratified the agreement the following month.
A key component of the plan was a $120 million debtor-in-possession (DIP) financing, with BTG Pactual (BPAC11 BZ) acting as the anchor lender. The funding provided liquidity to the company during the restructuring process.
The resources were used to repay part of the outstanding liabilities and reinforce the company’s cash flow, allowing operations to continue while the financial reorganization was carried out.
Disputes during the process
During the restructuring, some creditors challenged the dual role played by BTG Pactual as both creditor and financing provider, arguing it could represent a conflict of interest.
The controversy led the judge overseeing the case to determine in late 2024 that the bank had abused its voting rights, ordering that the restructuring plan be revised.
Following adjustments, the updated proposal was resubmitted to creditors and eventually approved, allowing the company’s financial reorganization to move forward.
Although some appeals related to the matter remain pending, the judge emphasized that none were granted suspensive effect, meaning there was no legal barrier to formally concluding the restructuring process.
Infrastructure projects continue
Despite the restructuring process, Odebrecht Engineering continued to participate in major infrastructure projects across Brazil.
These include sections of the Rodoanel Norte highway project in São Paulo, which links the Presidente Dutra and Fernão Dias highways, as well as construction of the Gávea metro station in Rio de Janeiro.
The company is also involved in the Line 1 expansion of the Salvador metro system, developed with partners Álya and MPE.
In the energy sector, Novonor subsidiaries are executing projects tied to Petrobras (PETR4 BZ), including a naphtha hydrotreatment unit at the Abreu e Lima refinery and additional industrial units at the Boaventura Energy Complex, carried out through Tenenge with partners including EGTC and Mota-Engil (EGL LN).
Odebrecht Engineering has also won bids for metro expansion projects in São Paulo, including the Line 5-Lilac extension toward Jardim Ângela and lots of the planned Line 19-Celeste, though final contracts have yet to be signed.
While the engineering unit’s restructuring has now been completed, the broader restructuring of Novonor, formerly Odebrecht, remains ongoing following the group’s 2019 filing after financial fallout linked to Brazil’s Operation Car Wash investigation.
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