Odebrecht SA’s sugar unit files for bankruptcy

Odebrecht-Lone star

The sugar and ethanol business unit of Brazil’s Odebrecht SA, Atvos Agroindustrial Participacoes SA, is filing for bankruptcy protection.

The filings are being prepared to protect the company as it prepares to shut down.

People with the knowledge of the matter told Reuters News that the filing will be submitted this week.

Atvos is filing for bankruptcy after American private equity firm, Lone Star, received a court judgment to freeze the company’s cash reserve.

Odebrecht is a Brazilian conglomerate.