Brazilian investment group Grupo Fictor filed for bankruptcy protection for its holding companies on Sunday, seeking to manage about 4 billion reais ($762.24 million) in debt following a liquidity crisis triggered by the liquidation of Banco Master.
The filing includes Fictor Holding and Fictor Invest, but excludes subsidiaries such as Fictor Alimentos BMFBOVESPA:FICT3.
It seeks a 180-day stay on executions and asset freezes to allow negotiations with creditors, who are mostly investor partners, Fictor said in a statement.
BANCO MASTER
In November, Fictor announced it led a consortium which had agreed to buy Brazilian lender Banco Master in a deal that included an immediate capital injection of 3 billion reais.
Brazil's central bank liquidated the lender the day after the deal was announced, prompting Fictor to call it off.
Fictor argues that "market speculation" following the liquidation damaged its reputation and liquidity.
($1 = 5.2477 reais)