Petrobras Scandal Fallout Triggers Brazil Builder Bankruptcy
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Galvao Engenharia SA, a Brazilian builder being investigated in a probe of alleged kickbacks at Petroleo Brasileiro SA, filed for bankruptcy after being locked out of credit markets and banned from bidding on Petrobras work.
The company said Wednesday that its finances deteriorated as clients including Petrobras stopped payments. The builder also filed a request in a Rio de Janeiro court for protection for a related company, Galvao Participacoes, according to an e-mailed statement.