(Adds additional ruling information, lawyer comment, bankruptcy
petition, background, bond and share prices)
RIO DE JANEIRO Feb 19 Brazil's Oleo e Gas
Participações SA has won a final court ruling to add
international financing unit OGX Austria GmbH to its bankruptcy
filing, a lawyer for the company said on Wednesday.
The approval by the 14th Civil Part of the Rio de
Janeiro-State Justice Tribunal addresses concerns that failure
to include foreign subsidiaries in the bankruptcy petition could
mean any restructuring plan approved by a Brazilian judge might
be open to legal challenges in Brazil or abroad.
OGX Austria has sold $3.63 billion in bonds, the bulk of the
parent's debt. The ruling also allows the inclusion of Oleo e
Gas overseas unit OGX International.
"The decision recognized the needs of international
commerce," said Marcio Costa, a lawyer for Sergio Bermudes
Advogados in Rio de Janeiro which represents Oleo e Gas. "Beyond
this, the joint filing confirms the legal structure prepared for
Oleo e Gas stock fell 4.2 percent to 0.23 reais, on track
for its sixth decline in seven days, in mid-afternoon trading in
The Rio de Janeiro oil company controlled by Brazilian
tycoon Eike Batista filed for protection from creditors in Latin
America's largest-ever bankruptcy filing on Oct. 30. The
company, formerly known as OGX Petroleo e Gas Participações SA,
filed a restructuring plan with the 4th Commercial Part of the
Rio de Janeiro-State Justice Tribunal on Friday, Feb. 14.
Under that plan Batista will give up control of the company
to creditors owed 11.2 billion reais ($4.63 billion) at the time
of the bankruptcy filing. The amount it owes in reais has gone
up since then because of the impact of a weaker Brazilian real
on debts in U.S. dollars. The real has slipped 8.8 percent
against the dollar since the filing.
The dollar value of Oleo e Gas's obligations has fallen for
the same reason. It was $5.2 billion at the time of the filing.
OGX Austria has sold $1.06 billion of 8.375 percent bonds
due in April 2022 ; and $2.56 billion of 8.5
percent bonds due in June 2018.
The 2022 and 2018 bonds trade at about 5 cents on the dollar
according to Thomson Reuters prices.
Oleo e Gas's bankruptcy filing is case number
0377620-56.2013.8.19.0001 at the Rio de Janeiro-State Justice
($1 = 2.40 Brazilian reais)
(Reporting by Sabrina Lorenzi; Additional reporting by Jeb
Blount; Writing by Jeb Blount; Editing By Franklin Paul and