Oleo & Gas Participacoes SA (OGXP3), the Brazilian oil company that defaulted on $3.6 billion of bonds, is delaying a restructuring agreement for a second week after Blackrock Inc. (BLK) and Blackstone Group LP’s GSO pulled out of the deal.
OGP now plans to finalize the agreement, which calls for bondholders to inject $200 million as debtor-in-possession financing, and present the plan to a Rio de Janeiro bankruptcy court by Feb. 7, according to a statement late yesterday. Under the proposal, bondholders will convert holdings into equity and former billionaire Eike Batista will cede control.
“The DIP financing is a priority at this moment, to overcome the company’s current financial crisis and guarantee the continuation of operations,” OGP said.
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