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Brazil's Grupo Schahin defeats Itaú challenge to debt plan
March 13, 2017 / 9:25 PM / 9 months ago

Brazil's Grupo Schahin defeats Itaú challenge to debt plan

SAO PAULO, March 13 (Reuters) - Grupo Schahin said on Monday it can execute a reorganization plan after an appeals court favored the ailing Brazilian engineering and rig-leasing conglomerate over disgruntled creditors, according to a statement.

The reorganization, confirmed by a bankruptcy court a year ago, was challenged by a 13-bank consortium led by Itaú Unibanco SA, the statement said.

Schahin’s reorganization foresees repayment of 6.5 billion reais ($2 billion) of defaulted debt over a 15-year period, without any deductions, the company said.

After the Sao Paulo appeals court ruling, the repayment will be executed as planned, according to the statement.

Separately, the company said it had won a ruling in court to maintain the contract of its Vitória 10.000 drill ship with state oil firm Petroleo Brasileiro SA.

Petrobras, as the company is known, had sought to stop renting the drillship, which is Schahin’s last in operation and whose rental proceeds are included as collateral in the reorganization plan.

Schahin said in statement the contract with Petrobras will guarantee that Schahin can meet the terms of its plan, the statement said. ($1=3.1520 Brazilian reais) (Reporting by Ana Mano; Editing by Daniel Flynn and Chris Reese)

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