SAO PAULO, Jan 28 (Reuters) - A Brazilian bankruptcy court upheld a restructuring plan for embattled engineering conglomerate Grupo OAS, paving the way for a slew of asset sales aimed at helping pay over 8 billion reais ($2 billion) in liabilities.
In a Thursday statement, the São Paulo-based group said that bankruptcy judge Daniel Carnio Costa gave his approval to the plan, which had previously been voted by an assembly of creditors in December. Under the plan, creditors will take an 80 percent loss on their debt and accept repayment for as many as 25 years.
OAS now has five business days to publish terms of an auction to sell a 24.4 percent stake in infrastructure company Invepar, the statement said. The Invepar sale, whose minimum auction price creditors set at 1.35 billion reais, is expected next month, with Brookfield Asset Management Inc securing the right to top bids from any other interested party.
Carnio’s approval of the plan, which was presented in June to creditors and the court overseeing OAS’s bankruptcy proceedings, means that the engineering group will remain operational, keep as many as 100,000 jobs and stay current with suppliers.
Grupo OAS filed for bankruptcy protection in March to facilitate the debt restructuring. The filing came after Grupo OAS struggled with the impact of a corruption probe at state-controlled oil producer Petróleo Brasileiro SA and other state companies - the scandal undercut access to financing and halted potential government contracts.
Creditors also approved in December the sale of Grupo OAS’s interests in a waste management firm and a rig building unit which may fetch 475 million reais for OAS.
$1 = 4.0540 Brazilian reais Reporting by Guillermo Parra-Bernal Editing by W Simon