With respect to Odebrecht S.A.'s (“ODB”) filing for court-supervised reorganization, presented on Monday (17/06), the company has publicly informed that “the following companies are not included in the scope of the court-supervised reorganization: Braskem S.A., Odebrecht Engenharia e Construção S.A., Ocyan S.A., OR S.A., Odebrecht Transport S.A., Odebrecht Defesa e Tecnologia S.A. and Enseada Industria Naval S.A. (jointly referred to as the “Businesses”), as well as some operational assets in Latin America and their respective subsidiaries. Also not included in the court-supervised reorganization of ODB are Atvos Agroindustrial S.A. (which already is under court-supervised reorganization), Odebrecht Insurance Brokerage, Odebrecht Retirement Fund and the Odebrecht Foundation”.

We reinforce below some points related to OEC – Odebrecht Engineering & Construction:

1. ODB's filing for court-supervised reorganization does not extend to OEC, as the company, as informed, is in a different operational and financial situation;   
    
2. OEC follows the normal course of its negotiations with its international bondholders and is not impacted by ODB's request for court-supervised reorganization. The negotiation is conducted directly by its Leaders and its Board of Directors with the support of financial and legal advisors during this process;   
    
3. Bondholders have so far not shown any interest in enforcing non-negotiated debt, since they have the understanding that the best possibility of recovering the amount of their claims occurs in the scenario in which OEC is operating and well positioned to supply the current suppressed demand for infrastructure services in the market in which it operates;   
    
4. Despite few public and private projects launched in Brazil and abroad, OEC has already added more than US$ 1 billion in Backlog after Operation Car Wash (“Lava Jato”) and continues to actively participate in the infrastructure market in the locations where it operates, with several studies of projects under way and submitted proposals awaiting results;
    
5. OEC has adopted a series of measures to adapt its corporate structure (overhead) to the current size of its operations, while preserving its engineering operational capacity;   
    
6. OEC maintains the clear willingness to continue collaborating with the Justice systems of the countries where it is present, in order to be able to operate in these markets promoting the adaptation of the players to the new parameters of Compliance demanded by society;   
    
7. In recent years, OEC has transformed and strengthened its internal controls, taking some important measures: (1) creation of a Board of Directors (with three Independent Directors); (2) creation of a Compliance Department, with direct report from the Chief Compliance Officer to the Board of Directors; (3) centralization of the cash and financial controls/accounts payable; (4) due diligence of suppliers, eliminating those with any exposure for the company; (5) issue and practice of Financial, Legal and Compliance Directives; (6) development of Internal Auditing; and (7) creation of a Pipeline Committee for the analysis of all projects under prospection and study for presentation to the Client.  

The holding company Odebrecht S.A. provided information on this topic on its website. Click here to read more.