April 25, 2017 / 10:02 PM / a year ago

Odebrecht lenders to forgo early debt repayment after M&A deal

SAO PAULO, April 25 (Reuters) - Creditors of Odebrecht SA have agreed not to demand early debt repayment through the use of proceeds from the sale of a water and sanitation utility, giving the embattled Brazilian engineering conglomerate a lifeline to keep restructuring 76 billion reais ($24 billion) of obligations.

In a Tuesday statement, Odebrecht said it finalized the sale of a 70 percent stake in Odebrecht Ambiental SA to a group of investors led by Canada’s Brookfield Asset Management Inc. Odebrecht’s lenders will allow it to keep the 2.5 billion reais worth of proceeds from the sale, helping boost Odebrecht’s cash for the next two years, the statement said.

$1 = 3.1470 reais Reporting by Guillermo Parra-Bernal

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