Odebrecht Oil & Gas is close to settlement agreement

While the Odebrecht Group is trying to avoid a way out of the liquidity crisis it faces, especially in its main construction arm, the oil and gas subsidiary works on an out-of-court settlement to settle the accounts with bondholders. The agreement is expected to be signed in two weeks. Negotiations with these creditors has been going on for a year and a half. Now, with the out-of-court process, some unhappy bondholders will have to agree to stay up with the  60% majority. Odebrecht Oil & Gas says it is following constructive negotiations with its creditors to strengthen its short- and long-term financial position amidst the challenging scenario of the oil and gas industry.

Size of the problem

In all, Odebrecht Oleo e Gás (OOG) has US $ 3.7 billion debt owed to external creditors. There is a bondholder group holding $ 550 million in unsecured (perpetual bonds) and unsecured debt securities with which there has been no negotiations and will not sign the agreement.

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