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Brazil's Banco Cruzeiro do Sul's claim filing deadline set for Jan. 10
By Caroline Salls
Pittsburgh, Dec. 12 - Banco Cruzeiro do Sul SA's creditors have until Jan. 10 to file and register their claims against the bank, according to a notice released Wednesday.
Claims filed after Jan. 10 will be accepted but will be considered tardy. Holders of tardy claims will receive no distribution in the bank's liquidation proceedings.
All claims denominated in foreign currency will accrue interest until Sept. 13.
As previously reported, Fundo Garantidor de Creditos was expected to pay up to R$70,000 of bondholder claims between Nov. 22 and March 28 as part of Banco Cruzeiro do Sul's liquidation process.
After March 28, remaining creditors are to request payment directly from Cruzeiro do Sul.
FGC was appointed as temporary special administrator by Banco Central do Brasil in June 2012. The central bank imposed a temporary special management regime on the bank because of a detected inconsistency of about R$1.3 billion in the loan portfolio owned by the bank and a related breach of accounting rules.
The central bank froze the personal assets of the controlling shareholders of Cruzeiro do Sul and replaced the board of directors and the executive board. FGC appointed several external advisers to help perform due diligence on the bank's financial information.
FGC intended to acquire a certain amount of the bank's local debt obligations, convert a portion of the debt obligations into equity by canceling the obligations and sell the bank to a potential acquirer.
However, FGC failed to receive a binding offer from a financial institution to acquire Cruzeiro do Sul, and Banco Central do Brasil ordered the liquidation of Cruzeiro do Sul in September.
As a result of the liquidation, FGC's tender offers to buy back the bank's bonds, which began on Aug. 15 and were scheduled to expire on Sept. 13, were canceled.
Sao Paulo-based Cruzeiro do Sul is a private commercial bank that focuses on the paycheck-deductible loan and credit card loan segments.
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