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Brazil state bank seeks liquidation of Odebrecht

October 4, 2019

RÍO DE JANEIRO (AP) — A state-owned Brazilian bank is asking courts to liquidate the construction giant Odebrecht, which is at the center of a corruption scandal that has swept across the hemisphere.

Odebrecht on Friday confirmed the move by La Caixa Federal, but said in a statement that it is part of “formalities or a legal strategy without consequences.”

La Caixa Federal is among many creditors of Odebrecht, which is under court bankruptcy protection while it tries to pay off or renegotiate its debts.

The company has acknowledged paying enormous bribes to politicians across Latin America, leading to the downfall of many political and business leaders.

The company says it’s confident that its reconstruction plan will eventually be approved, saving some 40,000 jobs.

La Caixa Federal said it would not comment on the request.

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