Petrobras Still Breaching Debt Rules, Aurelius Tells Bondholders
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Aurelius Capital Management LP said Petroleo Brasileiro SA remains in violation of bond terms and creditors should notify the oil producer that the infraction will constitute a default if it isn’t resolved within 60 days.
Petrobras failed to report third-quarter earnings that complied with rules set by the International Accounting Standards Board, violating covenants of its dollar-denominated debt, the hedge fund said in a letter to bond holders obtained by Bloomberg News. The state-controlled company at the center of Brazil’s biggest ever graft case released unaudited results Jan. 28 after delays prompted Aurelius to ask bondholders at the end of December to notify Petrobras of an event of default.