Bahamas Court recognizes Master's liquidation and authorizes search for assets abroad

The Bahamian Court recognized the liquidation of Banco Master and authorized the foreign representative to act on behalf of the institution and other group companies in the country.
The decision, dated May 26 - revealed by the "Metrópoles" portal and to which TV Globo and g1 had access - was taken by the Supreme Court of the Bahamas.
The Court's decision allows the company responsible for the liquidation, "EFB Regimes Especiais de Empresas Ltda."', to exercise powers to seek and manage assets abroad.
Recognition is an important step to give international reach to the process conducted in Brazil (read more below).
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On November 18, 2025, the Central Bank of Brazil ordered the extrajudicial liquidation of Banco Master and appointed EFB as liquidator.
In addition to Banco Master S.A., the measure extends to four other companies in the group, including an investment bank and brokerage.
Operation in the abroad
With the decision, the foreign representative now has authorization to:
act on behalf of companies in the Bahamas;
access financial information;
seek and recover assets;
participate in legal proceedings.
The court highlighted that recognition follows rules of international cooperation in insolvency cases and aims to ensure a "fair and efficient" conduct of the process.
Banco Master
Reproduction/TV Globo
Suspicions of fraud
In the decision, the judge mentions investigations conducted in Brazil involving the group.
According to the records, there is evidence that the bank's controller, Daniel Vorcaro, and others involved had embezzled at least US$1 billion in assets, through operations such as purchasing assets with inflated values and granting credit with overvalued guarantees.
The document also mentions the existence of investigations into the use of resources from investors and depositors, which led to the intervention of the Central Bank.
Timeline
The case of Banco Master involves a recent sequence of events:
November 2025: Central Bank declares liquidation of the bank;
March 2026: new companies in the group enter the process;
May 2026: Justice of the Bahamas analyzes request;
May 2026: recognition of the foreign liquidator.
According to the court, the liquidation process in Brazil is collective in nature and seeks to gather assets to pay creditors.
International cooperation
The decision highlights that Brazilian procedures are compatible with the legal requirements of the Bahamas, including with regard to supervision by authorities and access to the Judiciary.
The judge also highlighted that recognition respects the principle of "international courtesy", common in cases of transnational insolvency, allowing countries to cooperate in the management of assets and debts.
In another section, the decision states that Brazilian courts maintain supervision over the process, even with the actions of the Central Bank, which meets the requirements of local legislation.
Participation of creditors
The court also indicated that the liquidator's actions must ensure equitable treatment to creditors, including those located outside Brazil.
The measure allows assets possibly located in the Bahamas to be identified and incorporated into the liquidation process, increasing the chances of reimbursement.
The decision does not detail possible appeals, but, as it is a judicial decision, questions can still be raised in the higher courts of the Bahamas.
The court itself emphasizes that interested parties can appeal to the courts during the process.

Source: G1