Credit cycle takes turn for the worse

摘要

Troubles in corporate Brazil bubbled to the surface last week after a string of borrowers moved to fend off creditor complaints and struggled under the weight of billions of dollars worth of debt. Of's bankruptcy filing - Brazil's largest ever - topped off a week that also saw airline GOL forced to sweeten its bond tender, steelmaker USIMINAS cut a deal with creditors and miner SAMARCO pick banks for a possible debt restructuring. Yet while the latest round of debt difficulties adds to the woes in the country's corporate sector, it is seen as the tail-end of economic downturn in Brazil that has left a string of defaults in its wake.