Sete Brasil creditors tapping state-backed fund: source

Sao Paulo

SETE Brasil Participacoes' creditors, including Banco do Brasil and Itau Unibanco Holding, received 2.68 billion reais (S$940 million) from a government-backed fund and are likely to tap about 1.58 billion reais more, according to a person familiar with the matter.

Creditors withdrew the money from the fund created with government assets in 2008 after Sete Brasil couldn't repay US$3.8 billion in outstanding debt, said the person, who asked not to be identified because the matter is private. Data from Brazil's securities regulator show the fund reported a 2.11 billion-real withdrawal on Feb 10 and an additional 566.5 million reais on Feb 12.