By Guillermo Parra-Bernal
SAO PAULO, Jan 24 Bankrupt oil producer Óleo e
Gás Participações SA has delayed detailing its restructuring
plan to creditors until Jan. 31 as it tries to secure new
funding, the company said in a statement on Friday.
Óleo e Gás, controlled by Brazilian tycoon Eike
Batista whose business empire collapsed last year, and its
creditors were discussing terms of a potential $200 million
debtor-in-possession, or DIP, loan, two sources told Reuters
earlier on Friday.
The company had enough funds to stay afloat and the delay
was unlikely to disrupt operations, according to the sources,
who declined to be identified. It had been expected to present
its restructuring plans to creditors on Friday.
In the statement, the company said it agreed with
bondholders to delay for a week the presentation of the
restructure plan and signature of the DIP loan.
The managers of Óleo e Gás want to convince the maximum
number of creditors to back the recovery plan, which has to be
filed with a Brazilian bankruptcy court, the first source said.
Óleo e Gás, formerly known as OGX Petróleo e Gas
Participações SA, owes about $5.1 billion to investors such as
bond fund Pimco, suppliers including Schlumberger NV,
and sister company and shipbuilder OSX Brasil SA.
Its bonds and shares fell on Friday, a sign investors worry
a deal with creditors could drag on.
The price on Óleo e Gás's 8.375 percent bond due in 2012
slipped to 5.25 cents on the dollar, touching a new
low. The company's 8.5 percent bond due in 2018
fell 0.25 cent to 5.5 cents on the dollar on Friday.
Its shares shed 8.6 percent to 0.32 Brazilian reais. The
stock is up 33 percent this year, however, after tumbling 95
percent in 2013.
Former billionaire Batista, who also controls OSX, saw his
empire of commodities and industrial companies collapse last
year under a mountain of debt after disappointing output at its
oil wells sent investors running for the exits.
Once Óleo e Gás delivers the restructuring plan to the
bankruptcy court, creditors will then have between 30 days and
60 days to endorse or reject the plan.
Bankers and creditors have moved slowly with the loan
because they are uneasy with the lack of precedent for such a
structure in Brazil, the second source said.
In the United States, debtor-in-possession loans are the
first debt that gets repaid.
As a result, such loans tend to be a regular feature of
bankruptcy cases and are credited with saving companies and
their employees from fire-sale liquidations.
In recent weeks, Óleo e Gás obtained a bridge loan to pay
for operations while it seeks the debtor-in-possession loan.
The company, which filed for bankruptcy protection on Oct.
30, stands to lose offshore exploration rights in Brazil's
Espírito Santo state should it fail to meet capital spending
commitments by the end of this week, a source with direct
knowledge of the situation told Reuters on Thursday.