Brazil debt restructuring is surging out of court, with distressed company debts more than doubling this year as a fifteen percent policy rate bites.
Key Facts
—The surge. Debts in out-of-court restructurings reached more than 109 billion reais in 2026, up from 41.5 billion reais in 2024.
—The count. Filings rose from 16 in 2021 to 84 last year, with 33 companies already following this year.
—The cause. A benchmark interest rate of 14.25 percent is straining firms that borrowed heavily during the pandemic.
—The anchor. Fuel and sugar group Raízen filed Brazil’s largest-ever out-of-court case at about $12.5bn.
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