Brazilian oil service and equipment company Lupatech SA failed to make a $6.79 million interest payment on $275 million of 9.875 percent perpetual bonds, according to a securities filing on Thursday. As a result, trading on the debt has been suspended in Luxembourg’s financial bourse, where the securities are registered, the filing said.
Lupatech has said it faces cash-flow problems as giant oil projects by Brazil’s state-controlled Petroleo Brasileiro SA and other companies have been delayed. The company said it hopes to present a recovery plan for the medium- and long-run “as sson as possible,” the filing said.
Lupatech hired Bank of America Merrill Lynch as an advisor in a corporate restructuring, the filing said.