OGP Postpones Restructuring Agreement After BlackRock Withdrawal


News: Brazilian oil company Oleo & Gas Participacoes (OGP), formerly known as OGX Petroleo e Gas Participacoes, has postponed a debt deal for a second week. The delay came after BlackRock and Blackstone Group LP's GSO withdrew from the restructuring agreement. The oil company, which defaulted on US$3.6bn of bonds, now intends to finalise the agreement. OGP plans to call for bondholders to inject US$200mn as debtor-in-possession (DIP) financing. 'The DIP financing is a priority at this moment, to overcome the company's current financial crisis and guarantee the continuation of operations,' said OGP (Bloomberg). The company is expected to submit a plan to a Rio de Janeiro bankruptcy court by February 7.

This article is tagged to:
Sector: Country Risk, Oil & Gas
Geography: Brazil