UPDATE 3-Creditors approve restructuring of Batista's Oleo e Gas
(Adds restructuring detail, company comment and plans, criticism of plan)
By Jeb Blount
RIO DE JANEIRO, June 3 (Reuters) - Creditors of Brazilian tycoon Eike Batista's Oleo e Gas Participacoes SA approved a restructuring plan for the oil company that could lead to a quick resolution of the largest bankruptcy in Latin America's history, lawyers said on Tuesday.
The plan was approved by creditors holding 90 percent of the Rio de Janeiro-based company's nearly 12 billion reais ($5 billion) of unpaid obligations.
If a judge approves, creditors will swap debts for about 90 percent of Oleo e Gas stock, said Ricardo Knoepfelmacher of Angra Partners, the consultancy that handled talks with creditors. The judge's approval is expected within days, he said.
Creditors include Newport Beach, California-based Pacific Investment Management Co, or PIMCO, one of the world's largest bond investment companies; Batista's shipbuilding company, OSX Brasil SA, and suppliers such as oil services company Schlumberger NV.
"This is one of the first Brazilian cases to be solved in a coherent way, using solutions that are common in developed countries," said Eduardo Munhoz, a lawyer with Mattos Filho Advogados, one of the law firms representing the company.
Munhoz said the restructuring deal is important because it shows that Brazil's 2001 corporate law rewrite has properly tilted power away from shareholders to creditors such as suppliers, lenders, employees and bondholders.
Coming only seven months after Oleo e Gas, then known as OGX Petroleo e Gas Participacoes SA, filed for bankruptcy, the approval may boost confidence in Brazil's corporate bankruptcy legislation, he added. Continuación...