UPDATE 1-Brazil’s BTG Pactual research asset sales to bolster liquidity

BRASILIA Brazil’s troubled investment bank Grupo BTG Pactual is contemplating the sale of a series of assets to interested investors to enhance its liquidity but has not signed any deals but, the bank mentioned on Friday in a securities filing.

BTG mentioned it was studying the sale of parts of BSI, Recovery, Leader, UOL, BodyTech, BR Properties and Bravante, amongst other assets, to enhance its cash position and stem outflows following the arrest of founder André Esteves final week.

BTG mentioned its Banco BTG Pactual SA and BTG Pactual Participation Ltd units had been lately approached by third parties interested in acquiring diverse assets.

“As a result of these contacts, the organizations are taking into consideration these enterprise opportunities and could, if they deem convenient, sell component of their assets to additional improve their liquidity and strengthen their money positions,” the filing stated.

Brazilian financier André Esteves resigned as chief executive officer and chairman of BTG Pactual late on Sunday right after he was jailed as portion of a corruption inquiry swiftly ensnaring Latin America’s biggest independent investment bank.

Earlier on Friday, BTG Pactual SA stated it had secured a 6 billion-actual ($ 1.6 billion) lifeline from a deposit assure fund backed by Brazil’s prime banks.

Customers pulled out and the bank’s financing situations deteriorated following the Nov. 25 arrest of Esteves, the bank’s former controlling shareholder. The 3 key credit rating agencies have downgraded the bank’s debt to junk status since his arrest.

BTG Pactual’s Brazil registered fund had net outflows of 12.two billion reais ($ three.two billion) from Nov. 25 to Nov. 30 and 3.04 billion reais on Nov. 30 alone, data from Brazil’s fund business group Anbima showed on Friday.

Esteves faces indefinite detention following prosecutors accused him of operating with Senator Delcídio do Amaral, the ruling Workers’ Celebration leader in the Senate, to obstruct a bribery probe at state-run oil company Petroleo Brasileiro SA (Petrobras) Esteves and Amaral have denied the allegations.

(Reporting by Anthony Boadle Editing by Chris Reese and Dan Grebler)