Introduction
Until recently the Brazilian economy experienced a period of significant growth, attracting substantial foreign investment and leading many to believe that Brazil was poised to make the leap from emerging economy to world economic power. However a series of dubious economic decisions, coupled with rampant government spending and troubling corruption scandals, have halted Brazil’s growth and dragged the country again into financial uncertainty.
Critical to this scenario has been the so called “Car Wash” operation of the Brazilian federal police, which has been investigating well-publicized corruption involving Petrobras, Brazil’s state-controlled oil company, public officials and several of Petrobras’ contractors. As a result, a number of these contractors, including some of Brazil’s biggest construction companies, have been facing significant financial problems.
Among such troubled companies is the OAS Group, a major Brazilian conglomerate which filed for judicial reorganization under Brazilian law in March of 2015, after a series of unsuccessful efforts to restructure out of court. In the course of those efforts the OAS Group engaged in a series of transactions that made changes to the overall corporate structure and transferred assets among members of the group.
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