Insights | Kobre & Kim — Disputes and Investigations

International creditors are facing a shrinking pool of available capital for repayment on their claims in Brazil and Latin America.
As companies struggle to navigate ever-increasing amounts of debt, there are strategies US dollar noteholders can take to improve their position and fast-track a swift recovery.

As Chinese investment in Latin America grows, so do legal risks for Latin American companies.
Cross-border strategies such as using Hong Kong arbitration, offshore insolvency tools, and targeting decision-makers can help improve outcomes in disputes with Chinese entities.

As part of its continued growth in Latin America, Kobre & Kim has appointed Renata Ramalhosa as Regional Managing Director, based in São Paulo.
Renata will expand and enhance relationships with local law firms, strategic advisors, key regional stakeholders, and clients outside of Brazil with Brazilian interests.
Renata has held leadership roles in both the private and public sectors.

Economic ties between Latin American and Chinese businesses continue to deepen. There are unique risks involved if a dispute arises with the Chinese company.
Even if an organization or investor succeeds in an arbitration or litigation against a Chinese company, the Chinese legal system’s intricacies may create barriers to getting the company to pay.
Latin American companies and investors should consider cross-border strategies to increase their leverage.

Many Brazilian and Latin American companies that borrow in US dollars are facing a growing mountain of debt.
As international creditors eye a shrinking pool of capital available for repayment, US dollar noteholders may be left at the back of the line relative to onshore creditors.
However, there are a number of options at USD noteholders' disposal that could improve their position and increases their chances of recovery.

Deals and partnerships between Latin American and Chinese companies are growing as economic ties between the two regions deepen.
However, unique risks are involved if a dispute arises with the Chinese company – the Chinese legal system could create barriers to payment, even with an award or judgment in hand.
Latin American companies and investors should consider cross-border strategies to increase their leverage.

A wave of cross-border financial distress and insolvencies is rocking Brazilian companies – Brazilian airline GOL filed for Chapter 11 in the U.S. in January 2024.
Although international creditors have historically faced a Brazilian insolvency landscape that has created many practical impediments, things are changing.
A new Brazilian bankruptcy law, if combined with a multijurisdictional approach touching the U.S. and offshore, can give creditors additional leverage toward a favorable recovery.

The new administration of Javier Milei in Argentina marks a shift away from the political establishment, with his promises to purge the “political caste.”
Politically exposed persons may be at risk – new authorities around the world often engage in politically motivated investigations.
At-risk individuals and businesses should take proactive steps to protect their assets, liberty and reputation.

Brazil is seeking more investment from China, with almost half of China’s investments in South America being in Brazil.
However, the recent wave of insolvencies in Brazil could threaten these investments, particularly if fraud is uncovered, leaving investors to navigate the complex Brazilian insolvency landscape.
By undertaking a more assertive, multijurisdictional approach, combined with new insolvency tools in Brazil, investors can seek to gain the upper hand.

The Americanas fraud has led a wave of insolvencies in Brazil, shaking the market.
This wave of financial distress has ensnared international creditors into the slow-moving Brazilian insolvency landscape.
However, new developments in Brazil – combined with an assertive cross-border strategy – can help creditors gain the upper hand and reach a quicker resolution.

The tumultuous power transfer in Brazil has sparked investigations into the new administration’s political opponents.
This is an example of a larger global trend where regime change may result in politically motivated investigations, threatening a politically exposed person’s liberty, reputation and assets.
Our team walks through proactive steps those at risk can take to protect themselves.

Brazil’s looming election could lead to a sharp shift in government and potentially, as part of a global trend, result in politically motivated investigations against rivals and their businesses.
These investigations can involve misconstrued allegations or undermined due process, and can threaten even overseas assets.
Our International Private Client team explains how politically exposed individuals can take proactive steps to protect their assets, liberty and reputation.

Bribery-related headlines have been swirling in Latin America in recent years, most recently in Argentina.
Cross-border cooperation among law enforcement authorities appears to be at an all-time high, with local Latin American authorities and U.S. regulators joining their enforcement efforts on large-scale corruption probes such as Operation Car Wash, which has amounted to billions (USD) in monetary penalties paid by those implicated.
Here are five ways to mitigate risks relating to the Foreign Corrupt Practices Act (FCPA) investigations in Latin America.