Odebrecht Oil & Gas Seeks U.S. Bankruptcy Protection

Brazil’s Odebrecht Oil & Gas filed for bankruptcy protection in the U.S. Friday to help implement a previously announced multibillion-dollar debt restructuring, The Wall Street Journal reported. Odebrecht Oil & Gas, an arm of engineering conglomerate Odebrecht SA, sought chapter 15 protection, the section of the bankruptcy code that deals with international insolvencies, in the U.S. Bankruptcy Court in New York. Large foreign companies, particularly those with U.S. operations or dollar-denominated debt, often file for bankruptcy in the U.S. to aid sale or restructuring processes in their home countries. Like chapter 11, chapter 15 immediately halts lawsuits and blocks creditors from seizing assets. A spokesman for Odebrecht Oil & Gas couldn't immediately be reached for comment Friday. In May, Odebrecht’s oil and gas arm entered into an agreement with a group of creditors to restructure its financial debt. The reorganization plan, which covers $5 billion in debt, was filed with a court in Rio de Janeiro. Read more. (Subscription required.)