BREAKING NEWS

Brazil builder PDG reaches non-binding agreement with banks -filing

Now Reading:

Brazil builder PDG reaches non-binding agreement with banks -filing

Text size Aa Aa

SAO PAULO (Reuters) – PDG Realty SA, the largest Brazilian homebuilder to have filed for bankruptcy protection, reached a non-binding agreement with bank creditors as part of restructuring talks, the company said in a filing late on Friday. PDG filed for bankruptcy protection in February after citing a severe cash crunch and onerous debt of 7.3 billion reais ($2.33 billion). It presented an in-court reorganization plan on June 7. Banks Caixa Econômica Federal, Banco do Brasil SA <BBAS3.SA> and Itaú Unibanco Holding SA <ITUB4.SA> and the company agreed to leave segregated assets outside the in-court reorganization, the filing said. PDG has struggled with cost overruns since it purchased smaller rival Agre Participações SA in May 2010, while also dealing with Brazil’s deep recession over the last two years. ($1 = 3.1307 reais)

(Reporting by Silvio Cascione)
euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.