Brazilian firms linked to 'Car Wash' probe could sell infra assets - report

Tuesday, December 16, 2014

Faced with difficulties in raising cash through bond issues and lines of credit, several companies being investigated under Brazil's so-called Operation Car Wash corruption probe are considering asset sales that could involve the airport and highway infrastructure sectors.

Construction company Engevix is looking at the possibility of unloading airport concession assets, local daily Valor Econômico has reported.

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The company is part of a group that holds concessions at the international airports of Brasília and São Gonçalo do Amarante (Rio Grande do Norte state), and is not expected to add large scale airport or highway projects to its portfolio anytime soon, the report said.

Another company operating at risk is OAS, which makes 75% of its revenue in engineering and construction works. According to Fitch ratings agency, selling off assets would give the company much needed breathing room. OAS is a shareholder of infrastructure company Invepar, a partial concession holder of São Paulo state's Guarulhos international airport.

Valor Econômico reports that engineering group UTC is also seen facing difficulties. At end-2013, more than 60% of the firm's accounts receivables came from contracts with state-run energy company Petrobras, which is at the heart of Operation Car Wash.

Other companies under investigation are Galvão Engenharia, Mendes Junior, Odebrecht, Queiroz Galvão, Camargo Corrêa, IESA, and Constran.