Brazil's Oncoclinicas faces net exposure of $41 million to collapsed Banco Master

About this update from Brb Banco De Brasilia Sa

Brazilian medical group Oncoclinicas BMFBOVESPA:ONCO3 faces a net exposure of about 216 million reais ($40.62 million) following the central bank's decision to halt operations at Banco Master, the firm said on Tuesday in a securities filing.KEY DETAILS• Oncoclinicas had about 433 million reais in deposit certificates issued by Master which matured on Tuesday.• The company also had already provisioned 217 million reais in its September financial statements after Master's credit rating was downgraded.• The medical group will take the necessary measures, including exercising a call option on quotas in two investment funds, Tessalia and Quiron, which hold Oncoclinicas shares worth 203 million reais.CONTEXT• Earlier on Tuesday, Brazil's central bank ordered Master's liquidation due to the lender's struggles with mounting liquidity pressures.• The country's federal police also arrested Master's controlling shareholder Daniel Vorcaro as part of an investigation into alleged fraudulent credit securities.• Master had grown rapidly through an aggressive strategy built on high-yield debt sold through investment platforms.($1 = 5.3176 reais)

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