Brazilian cement maker Cimento Tupi SA said it will miss a $9 million interest payment due Monday on bonds due 2018.
The $185 million of overseas bonds have a 30-day grace period, according to the Rio de Janeiro-based company. Tupi also said it hired investment bank Rothschild as its financial adviser.
The bonds sank to as low as 25 cents on the dollar this year as the construction industry was roiled by accusations that some builders formed a cartel and paid bribes to executives at the state-run oil producer in return for contracts. Tupi, which hasn’t been accused of wrongdoing, had 9.4 million reais ($3.16 million) of cash and equivalents as of December, according to data from the company.
Construction and engineering companies Galvao Engenharia SA and OAS SA, as well as rig supplier Schahin Oil & Gas SA, have all filed for bankruptcy protection after the allegations cut their access to financing.