Sete Brasil shareholders approve intend to seek bankruptcy relief

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Stockholders of oil rig enterprise Sete Brasil Participacoes SA consented to your strategy to file for bankruptcy protection after its single customer did not present a publication order that is workable.

A Sete Brasil official declined to elaborate and confirmed that investors are backing the strategy. Investors had set for Petroleo Brasileiro SA as a deadline to propose a novel order that may repay the capital they’d injected into the business, according to two individuals associated with the private discussions who asked not be identified. Petrobras, which can be the only customer of Sete and a stockholder, did not vote, they said.

The company might record about 18 billion reais ($6.9 billion) in obligations, one of the folks said.

The oil rig operator is made in 2011 to construct the world’s largest deepwater drilling fleet for Brazil’s state-run company that is petroleum.

Petrobras after cut on how many rigs it intended to rent from 28 to 10 from Sete amid dropping oil prices and the country’s largest- corruption probe, which jailed several of the former executives of Petrobras.

The smaller order would not be enough to refund 8.25 billion reais that investors invested in Sete Brasil, compelling them to inject more cash into the company, the folks said.

The investors, like Banco Santander SA and Grupo BTG Pactual have been discussing the insolvency filing for at least three months, based on folks involved with the discussions.

Next month the present standstill will mature.

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