RIO DE JANEIRO, June 13 A judge approved a
restructuring plan for Oleo e Gas Participacoes SA,
the oil company controlled by Brazilian tycoon Eike Batista,
according to a statement by the Rio de Janeiro court that heard
the bankruptcy proceedings.
The court's approval grants a quick and expected resolution
to the largest bankruptcy in Latin America's history.
Creditors of the company, formerly known as OGX Petroleo e
Gas Participacoes SA, approved the plan on June 3. Holders of 90
percent of the Rio de Janeiro-based company's nearly 12 billion
reais ($5.4 billion) in debt agreed to the plan.
In the statement released Friday, Judge Gilberto Clovis
Faria Mattos said quick resolution to the case was vital because
thousands of jobs at the company were at stake.
Under the terms of the plan, creditors will swap debts for
about 90 percent of Oleo e Gas stock.
Creditors include Newport Beach, California-based Pacific
Investment Management Co, or PIMCO, one of the world's largest
bond investment companies; Batista's shipbuilding company, OSX
Brasil SA OSXB3.SA, and suppliers such as oil services company
Schlumberger NV SLB.N.
The approval comes seven months after Oleo e Gas filed for
bankruptcy court protection.
The stake controlled by Batista, at present about 51 percent
of Oleo e Gas stock, will drop to about 5 percent. Ownership
transfer from Batista and other shareholders to creditors is
expected to occur by September or October.
Batista and other shareholders will get warrants to buy
about 15 percent of new Oleo e Gas stock.
The plan makes Oleo e Gas debt free, easing efforts to
increase output from offshore oil wells near Rio.
$1 = 2.22 Brazilian reais
(Reporting by Juliana Schincariol and Jeb Blount; Editing by