A majority of creditors of Brazil's Oleo e Gas Participacoes SA approved the terms of restructuring plan for the bankrupt oil and gas exploration and production company, its lawyers said.
Oleo e Gas, formerly known as OGX Petroleo e Gas Participacoes SA, filed Latin America's largest-ever bankruptcy-protection petition in Rio de Janeiro on Oct. 30.
"The challenge now is for the company to operate as a going concern," said Sergio Bermudes, a partner at Sergio Bermudes Advogados, which is one of the law firms representing the company.
A judge is expected to give final approval to the plan in the coming days or weeks. Creditors representing a minority of the company's debt may challenge the plan because they say they were not given equal opportunity to invest new capital into the company.
Creditors representing 90 percent of the debt approved the restructuring plan.
Brazilian tycoon Eike Batista is still the controlling stake-holder in the company. Batista lost almost all of his estimated $30 billion fortune last year after shares of the listed oil, shipbuilding, mining and logistics companies of his Grupo EBX plunged.
The company owes about $5 billion to investors such as bond fund Pacific Investment Management Co, suppliers such as oil services company Schlumberger NV, and to its sister company, shipbuilder OSX Brasil SA.
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