The Schahin Group, a conglomerate of 28 companies operating in Brazil, filed for bankruptcy protection on Friday, according to local media.
The group is being investigated in the scandal of the country's state-controlled oil and gas giant Petrobras, which involves bribery and overpriced construction contracts.
The Schahin group was, along with other Petrobras suppliers, blocked from the company's suppliers list, meaning it was suspended from public bidding processes, which may be a large blow, as governmental contracts are often construction companies' largest contracts in Brazil.
According to local daily Folha de Sao Paulo, Schahin was the sixth company to file for bankruptcy protection among the companies investigated in the Federal Police Operation Carwash.
Large companies such as Galvao Engenharia and OAS, one of the giants in the construction business in Brazil, filed for bankruptcy protection as well.