A Brazilian state appeals court postponed on Monday a vote on the legality of several aspects of Grupo OAS SA’s restructuring plan for at least a couple of weeks, adding uncertainty to efforts by the debt-laden engineering conglomerate to emerge from bankruptcy protection.
The appeals court in São Paulo agreed earlier in the day to reconvene as early as Oct. 3 to discuss the 19 challenges put forward by a number of local and foreign creditors. Some of the challenges include lengthy repayment timetables and Grupo OAS’s use of asset sales to favor some creditors, court documents showed.
The delay adds to uncertainty over Grupo OAS’s emergence from a painful restructuring triggered by a harsh recession and the group’s involvement in a sweeping corruption scandal. The ongoing delay in the plan has halted the surrender of OAS’s stake in Invepar Investimentos e Participacoes em Infraestrutura SA to creditors, slowing the builder’s recovery.