Brazilian shipbuilding company Engevix Construcoes Oceanicas (Ecovix) announced on Friday that it and five subsidiaries have filed for bankruptcy protection from creditors, according to Reuters.
The Rio de Janeiro-based company, itself a subsidiary of Engevix Engeharia SA, is struggling under $2.4bn in debt during a downturn in the market for new ships.
Bankruptcy proceedings will proceed at a federal commercial court in the southern state of Rio Grande do Sul.
Earlier this week it was revealed that Ecovix laid off 3,200 workers.
Parent company Engevix is one of the many contractors embroiled in the Petrobras bribery scandal.