Odebrecht Óleo & Gás SA, the offshore oil drilling firm owned by Brazil’s Odebrecht SA, has obtained support from more than 60 percent of its creditors for a restructuring of about $5 billion in debt, two sources with knowledge of the matter said on Friday.
The sources, who asked for anonymity because discussions are private, told Reuters the out-of-court restructuring could be announced as early as next week.
OOG, as the company is known, said in a statement to Reuters that it was “in final stages of talks held with creditors since 2015 to restructure its debt.” The company did not elaborate on a time frame or terms of the restructuring.
According to documents seen by Reuters, the company could change its name once the restructuring deal is in place.
In March, Reuters reported an out-of-court workout could help OOG bind minority creditors to restructuring terms already accepted by a relevant majority of banks, bondholders, and suppliers. The company has had difficulty contacting hundreds of individual bondholders.
OOG is among Odebrecht SA subsidiaries struggling with a widespread slowdown in Latin America and restricted access to credit in the wake of a huge corruption scandal.
Odebrecht SA has been accused of colluding to overcharge state firms for contracts, then using part of that to channel donations and bribes to Brazil’s biggest political parties.
Source: Reuters.com