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Deutsche Bank says Oleo e Gas lawsuit 'without merit'
June 1, 2014 / 4:32 PM / 4 years ago

Deutsche Bank says Oleo e Gas lawsuit 'without merit'

FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) 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 (OGXP3.SA) was without merit.

A closed branch of Deutsche Bank is pictured in a parking a parking garage in Bochum May 17, 2013. Picture taken May 17, 2013. REUTERS/Ina Fassbender

The bondholders filed a complaint on Friday against Deutsche Bank as the trustee for $3.6 billion of principal of defaulted notes.

“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

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