Reuters: Bankruptcy News: Brazil's Cruzeiro fails to lure bids as deadline looms-report

Reuters: Bankruptcy News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Brazil's Cruzeiro fails to lure bids as deadline looms-report Sep 10th 2012, 12:11 Mon Sep 10, 2012 8:11am EDT * Potential bidders failed to turn up, Valor says * Six banks had shown initial interest in lender * FGC could order Cruzeiro liquidation Wednesday SAO PAULO, Sept 10 (Reuters) - Banco Cruzeiro do Sul, the Brazilian consumer lender seized by the central bank in June, failed to receive firm takeover bids last week as concern over a potential liquidation is scaring clients and potential buyers alike, a local newspaper reported on Monday. None of the six lenders that showed initial interest in Cruzeiro do Sul turned up on Friday at the headquarters of the deposit guarantee fund FGC to make a firm bid, Valor said. The newspaper did not say how it obtained the information. The privately owned FGC is administering Cruzeiro do Sul at the behest of the central bank. Calls made by Reuters to Antônio Carlos Bueno, chairman of the FGC, and to a Cruzeiro do Sul spokeswoman seeking comment were not immediately answered. Bueno said recently that the fund will decide on Sept. 12 whether to liquidate the bank or sell it to a rival. Failure to sell the lender could trigger the biggest bankruptcy in Brazil's financial industry since the intervention and liquidation of Banco Santos in 2005. Cruzeiro do Sul was put under the administration of the FGC until the end of the year after the central bank found accounting problems that led to a $1.3 billion shortfall. Both FGC and Cruzeiro do Sul remain short of garnering the necessary support for a $1.59 billion bond repurchase plan ahead of Wednesday, the newspaper added. FGC has until Wednesday to win the approval of at least 90 percent of creditors to pass a 49.3 percent average discount on bond debt. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions