Brazil

Just 22% of Brazilian airline Gol’s bondholders agreed to a distressed debt exchange after several weeks of discussions, with one credit analyst saying that a rally in the real — and thus an upturn in the issuer’s prospects — meant many investors opted not to accept a haircut on their paper.

Dealers will hold an auction to settle credit default swaps referencing Portugal Telecom International Finance, after the International Swaps and Derivatives Association’s (ISDA's) EMEA Determinations Committee ruled that a bankruptcy credit event had been triggered on the contracts

The Dominican Republic and Brazilian meatpacker Marfrig jumped on favourable technicals in Latin American bond markets this week to tap, above par, bonds issued earlier this year.

Brazilian meatpacker Marfrig clinched a drive-by bond reopening on Wednesday to notch up another success in its proactive liability management programme, raising $250m of seven year bonds that it will use to buy back existing debt.

Refinancing risk for non-financial corporate bonds remains “high”, said Fitch on Tuesday, pointing out that more than $30bn of Latin American non-financial corporate bonds will mature in the next 18 months.

Brazilian state owned lender Banco do Brasil will buy back 12.5% of its 9.25% perpetual bonds after a tender offer was oversubscribed during the early bird phase.

Brazilian telecoms giant Oi filed for bankruptcy this week, after the company refused to meet bondholders’ demands for a restructuring that would have seen creditors take a 95% share of the company.

Brazilian low cost airline Gol has finally ceded ground to bondholders in its debt restructuring negotiations, sweetening their incentives to participate in a deal.

Fitch gave Brazilian telco Oi yet another downgrade on Friday after the company, which has nearly $15bn of debt, revealed that it had not responded to a restructuring proposal from bondholders.

More than three quarters of Brazilian industrial conglomerate Cosan’s bondholders agreed to sell their bonds in the early bird phase of a tender offer.

Petrobras made clear its desire to buy back as much of its 8.375% notes due 2018 as possible on Wednesday after extending final deadline of a tender offer for the notes for a second time.

Foreign bondholders in Usiminas, the Brazilian steel company, may yet make it out unscathed after the company reach a debt restructuring agreement with its bank lenders and local bondholders.