SAO PAULO May 30 Minority bondholders of bankrupt Brazilian oil company Oleo e Gas Participações SA filed suit in New York state court on Friday against Deutsche Bank AG, which is the trustee for $3.6 billion of principal of defaulted notes.
The bonds were issued by an Austrian subsidiary of Oleo e Gas, a company formerly known as OGX that filed for Latin America's largest-ever bankruptcy in October.
The minority bondholder plaintiffs allege that Deutsche Bank and affiliates "have made or will make grossly disproportionate distributions" to majority bondholders, according to a statement from the plaintiff's firm, Brown Rudnick LLP on Friday.
The plaintiffs believe majority bondholders will receive recovery at a rate 3.5 times over those of minority bondholders, in violation of Deutsche Bank's duty as trustee to "ensure that all holders of the notes are treated equally," the statement said.
Plaintiffs include Capital Ventures International of the Cayman Islands, GLG Partners LP of London, Brennus Asset Management and VR Global Partners L.P. (Reporting by Caroline Stauffer; Editing by Lisa Shumaker)
UPDATE 1-Moody's cuts Turkey's credit rating to 'junk' after coup
ISTANBUL, Sept 24 Ratings agency Moody's cut Turkey's sovereign credit rating to "junk," citing worries about the rule of law after an attempted coup and risks from a slowing economy, in a move that could deter billions of dollars of investment.
Moody's cuts Turkey's credit rating to 'junk'
ISTANBUL, Sept 24 Credit ratings agency Moody's Investor Service has downgraded Turkey's sovereign credit rating to non-investment grade citing worries about the rule of law following an attempted coup, risks from external financing and a slowing economy.