Friday, May 30, 2014
Brazil's Oleo e Gas Confident of Bankruptcy Exit Despite Obstacles
Fri., May 30, 2014
The chief executive of Brazil's Oleo e Gas Participacoes said Thursday he is confident the oil and gas company will manage to exit bankruptcy protection despite efforts by some of its creditors to derail the company's restructuring plan, The Wall Street Journal reported. Bondholders will gather in Rio de Janeiro to vote Tuesday on a restructuring plan for the company, formerly known as OGX. Earlier this week, one of the company's creditors was able to get an injunction from a judge in Rio aimed at stopping that vote. The order allows only the trustee—Deutsche Bank AG—to vote rather than all the company's bondholders, which hold some $3.6 billion in debt. Oleo e Gas is trying to reverse the injunction obtained by the creditor, said Darwin Correa, a lawyer at Paulo Cezar Pinheiro Carneiro law firm, which represents the oil company. People close to the former OGX say it wouldn't be surprised if other injunctions were produced before Tuesday. Smaller bondholders have said they weren't treated fairly during the company's restructuring-plan talks and weren't given the same chance to invest in the company's funding plans as its large bondholders.