Odebrecht Oleo e Gas foreign proceedings and plan order recognized

By Caroline Salls

Pittsburgh, Dec. 13 – Odebrecht Oleo e Gas SA was granted U.S. court recognition of its Brazilian extrajudicial reorganization proceedings, including recognition and enforcement of the order approving the Brazilian reorganization plans, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

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 recognition order also grants 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.

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 company filed bankruptcy on Nov. 3 under Chapter 15 case number 17-13130.

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