BTG-Backed Rig Venture Said to Mull Bankruptcy Filing in Brazil
- Sete Brasil investors, creditors may lose up to $7.1 billion
- Firm may decide to seek legal protection in a January meeting
Grupo BTG Pactual and other investors in a troubled drilling-rig supplier will meet this month and decide whether Sete Brasil Participacoes SA will file for bankruptcy protection after oil prices collapsed and it was cited in a sprawling corruption scandal, four people with direct knowledge of the matter said.
Shareholders may vote to seek legal protection from creditors for the venture in a Jan. 21 meeting, which would be the first step toward an eventual liquidation of the Rio de Janeiro-based company’s assets, according to the people, who asked not to be identified discussing a private matter. One of the people said a vote for a filing is unlikely this month, adding that under Brazilian law the company might also avoid liquidation through a restructuring either inside or outside the bankruptcy process.