UPDATE 1-Sete Brasil plans bankruptcy in week if no Petrobras lease proposal -sources

viernes 19 de febrero de 2016 21:03 GYT

(Adds details on meeting, company background, details on dispute within Petrobras)

By Guillermo Parra-Bernal

SAO PAULO Feb 19 (Reuters) - Sete Brasil Participações SA plans to file for bankruptcy protection if state-controlled oil producer Petróleo Brasileiro SA, the rig builder's sole client, fails to present a final lease contract proposal in a week's time, three sources with direct knowledge of the matter said on Friday.

Both Sete Brasil and Petrobras declined to comment.

Petrobras, as the oil company is known, asked for seven days to deliver the proposal, shareholders of Rio de Janeiro-based Sete Brasil were told at a meeting earlier on Friday, said the sources, who requested anonymity to speak freely about the matter.

Luiz Carneiro, Sete Brasil's chief executive officer, delivered the message on behalf of Petrobras, the sources said. The fate of Sete Brasil, which was created in 2008 by Petrobras, pension funds, banks and other partners to build the world's biggest deep-water drilling fleet order, hinges on Petrobras' willingness to sign a long-term rent contract for the rigs.

Shareholders, who have their combined 95 percent stake in an investment vehicle known as FIP Sondas, will request a judge to accept their bankruptcy protection request should Petrobras fail to deliver the proposal, as promised, one of the sources said. The shareholders include pension funds Previ, Funcef and Petros, banks Grupo BTG Pactual SA and Banco Bradesco SA , and investment firms.

"If no proposal is extended within the agreed deadline, Sete Brasil will ask for creditor protection," the same source said.

A bankruptcy filing by Sete Brasil would be devastating not only for the banks, funds and investors that backed the project, but also for dozens of shipbuilders and manufacturers supplying the company. More than 800,000 local shipbuilding jobs could be lost, sparking about 40 billion reais ($10 billion) in losses for the economy, the same source added.   Continuación...