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)