Odebrecht Oleo e Gas files Chapter 15 case, seeks recognition of plan

By Caroline Salls

Pittsburgh, Nov. 3 – Odebrecht Oleo e Gas SA made a Chapter 15 bankruptcy filing Friday in the U.S. Bankruptcy Court for the Southern District of New York to gain U.S. court recognition of its Brazilian extrajudicial reorganization proceedings.

Under the company’s Brazilian reorganization plans, existing project notes will be exchanged for new 2021 notes secured by the same collateral and new 2022 notes.

Holders of exchanged financial claims will receive new dollar-denominated perpetual, participating titles.

The plans were approved by the 4th Commercial Court of the State of Rio de Janeiro on Oct. 19. As part of the Chapter 15 case, Odebrecht Oleo is seeking U.S. court recognition of the plan approval order.

The company is also seeking an injunction against any actions take against the Odebrecht debtors and their assets.

According to a statement filed with the court, a large portion of the group’s capital structure is U.S.-dollar denominated and governed by New York law, including $550 million in 7% perpetual notes, $1.69 billion in 6¾% senior secured notes due 2022, $580 million of 6 5/8% senior secured notes due 2022 and $1.5 billion of 6.35% senior secured notes due 2021.

The company is represented in the Chapter 15 cases by Davis Polk & Wardwell LLP.

Rio de Janeiro-based Odebrecht renders services related to the charter and operation of drilling rigs, floating production storage and offloading units and pipe-laying support vessels, as well as maintenance activities in the oil and gas industry. The Chapter 15 case number is 17-13130.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.