(Bloomberg) -- Sete Brasil Participacoes SA, the oil rig- supplier embroiled in Brazil’s biggest graft scandal, expects to secure $4 billion in fresh funding to finish work on some rigs, said a person with direct knowledge of the matter.
The loan from local and foreign banks has already been negotiated and is in the final phase of approval, the person said, asking not to be identified because discussions are private. Creditors who previously lent $3.6 billion to Sete have agreed not to ask for payment through August, and the company is seeking to extend the stand-still agreement through October to avoid a default, the person said.
Sete Brasil was created five years ago by Petroleo Brasileiro SA, the government, pension funds and banks to supply deepwater drilling platforms to Petrobras through lease agreements. Development bank BNDES, which previously agreed to extend financing, withheld funds after former Chief Operating Officer Pedro Barusco testified late last year that he accepted bribes in exchange for awarding contracts as part of a wider corruption probe known as Carwash.
Marcelo Odebrecht, chief executive officer of Odebrecht SA, whose unit is a Petrobras partner on some Sete platform projects, was detained by police on June 19. Odebrecht said at the time the detention was unnecessary since the company and its executives cooperated with the investigation.
Founded after Petrobras made the Western Hemisphere’s biggest oil discovery in 30 years, Sete was a cornerstone of the government’s campaign to push companies to use locally made parts and equipment. The company originally sought out to spend $25.7 billion by 2020 to make 28 deep-water drilling platforms. Now, it’s trying to keep building 15 of the platforms, sell four rigs partially owned by Odebrecht and cancel the contracts for the rest, the person said.
Sete Brasil, which also gets funding from shipyard companies, plans to raise $700 million in capital through October and an additional $500 million in the next four years to build the rigs, according to the person. The company’s shareholders and creditors are seeking equity investors in Asia, according to the person.
“Sete Brasil does not confirm the information,’’ it said in an e-mailed response to questions. ‘‘The company continues to pursue the viability of its restructuring plan.’’
To contact the reporter on this story: Cristiane Lucchesi in Sao Paulo at firstname.lastname@example.org. To contact the editors responsible for this story: Peter Eichenbaum at email@example.com James Attwood, Jessica Brice
Copyright 2016 Bloomberg News.
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