BRASILIA Jan 14 Bankrupt oil company Oleo e Gas
Participações S.A., controlled by Brazilian
businessman Eike Batista, said on Tuesday it signed a deal for a
bridge loan of up to $50 million to finance operations as it
works with creditors to restructure its debts.
Obtaining the loans was one of the requirement in an
agreement the company reached with bond holders on Dec. 24 to
convert Oleo e Gas debt into stock. Oleo e Gas was formerly
known as OGX Petróleo e Gas Participações SA.
The bridge loan will be repaid once creditors provide a new
facility under a debtor in possession finance agreement. Under
the accord with bondholders, existing creditors will provide
between $200 million and $215 million of new financing to allow
the restructuring to go forward, Oleo e Gas said in a statement.
The discount, or interest, rate on the bridge loan is 20
percent, Oleo e Gas said.
The company's 11.2 billion real ($4.75 billion) bankruptcy
filling on Oct. 30 was the largest ever in Latin America, and
the biggest emerging-market bond default in 2013. A deal with
holders of $3.8 billion of bonds is considered essential to gain
the approval of a Rio de Janeiro judge for a