Aurelius Pushes Petrobras Debt Claim as Default Odds Soar
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Aurelius Capital Management LP’s bid to declare Petroleo Brasileiro SA in default underscores just how far the state-controlled oil producer has fallen in the eyes of bond investors.
The cost to protect against a Petrobras non-payment for one year has soared to the highest since the aftermath of the financial crisis, after the New York-based hedge fund said in a letter obtained by Bloomberg News last week that the company had violated debt contracts by failing to report third-quarter results. Under rules governing some of its $53.6 billion of bonds, Petrobras had until Dec. 29 to announce earnings, Aurelius said.