Andrade Gutierrez Seeks Extrajudicial Restructuring to Renegotiate R$3.4 Billion Debt

Overview

• The Andrade Gutierrez group has filed for extrajudicial recovery to restructure R$3.4 billion in liabilities and asked the 1ª Vara Empresarial in Belo Horizonte to suspend judicial executions to protect operations.
• The company says creditor consent exceeds the 70% threshold needed for homologation and that the proposal separates domestic and international creditors into two distinct restructuring plans.
• Andrade Gutierrez attributes its liquidity shock to stopped or delayed work that it says affected about 47% of its projects, including a R$1.4 billion road in Ghana and the R$3.2 billion Las Placetas hydroelectric project.
• The filing cites sharp macro pressures — a stronger dollar in 2024 and a big rise in Brazil’s policy rate by late 2025 — as drivers that raised the cost of foreign‑currency obligations and debt servicing.
• This is the group’s second extrajudicial reorganization since 2022 after multiyear losses and the outcome now hinges on court review and formal creditor approval, with immediate implications for suppliers, employees and stalled project timetables.