Odebrecht O&G may seek out-of-court reorganization with creditors

Odebrecht O&G may seek out-of-court reorganization with creditors

Brazilian offshore oil driller Odebrecht Oleo & Gas (OOG), part of the Odebrecht construction, engineering and chemicals giant, could seek an out-of-court reorganization with creditors, according to Reuters.

Citing unnamed sources, the report says the plan would aim to speed up the restructuring of $5bn in debts by binding minority creditors to a restructuring accepted by a majority of banks, bondholders and suppliers.

The restructuring process has already been going on for a year.

Much of OOG’s debt stemmed from $3bn it raised in bond sales to build offshore drilling ships which are now leased to troubled state oil firm Petrobras.

OOG declined to confirm the report of an out-of-court reorganization.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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