FRANKFURT, June 1 Deutsche Bank said
a lawsuit filed against it in a New York state court by minority
bondholders of bankrupt Brazilian oil company Oleo e Gas
Participações SA was without merit.
The bondholders filed a complaint on Friday against Deutsche
Bank as the trustee for $3.6 billion of principal of defaulted
"This is really a dispute between two bondholder groups that
is pending before Brazilian courts," Deutsche Bank said in a
statement. "We believe this suit is without merit, and Deutsche
Bank intends to vigorously defend itself."
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 plaintiffs alleged 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.
The bank said, however, that it had "fulfilled all of its
duties, including regularly keeping bondholders notified of all
changes and updates to their notes".
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 Thomas Atkins; editing by Jane Baird)