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
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)