Brazilian oil services provider Lupatech missed interest payments on $275 million of perpetual bonds two weeks after reporting annual losses doubled from a year earlier
April 12, 2013 Leave a comment
Brazil’s Lupatech Misses Dollar Bond Payment After Loss Doubles
Brazilian oil services provider Lupatech SA (LUPA3) missed interest payments on $275 million of perpetual bonds two weeks after reporting annual losses doubled from a year earlier.The company said in a filing to securities regulators that it missed a $6.79 million payment on the bond, and that it hired Bank of America Corp. as a financial adviser as it seeks to raise funds by selling assets.
“Lupatech has been intensely working to balance its capital structures with its capitalization executed in 2012 in selling assets that are not considered strategic,” according to the filing from the Caxias do Sul, Brazil-based company.
Lupatech reported March 28 that its net loss surged to 574 million reais ($291 million) in 2012. The company made 17 acquisitions from 2007 through 2010 in anticipation of increasing sales as Brazilian oil companies led by Petroleo Brasileiro SA sought to tap the largest crude discoveries in a decade. Local content laws, designed to boost Brazil’s oil- service and shipping industries, oblige producers to use minimum amounts of locally manufactured products.
A spokesman for Lupatech who works for FSB Comunicacoes declined to comment beyond the filing.
Lupatech’s restructuring marks at least the fourth time a Brazilian company has halted payments on dollar bonds since February 2012.
Electric utility Centrais Eletricas do Para SA, parent Rede Energia SA and lender Banco Cruzeiro do Sul SA defaulted on a combined $2.3 billion last year, according to data compiled by Bloomberg.
To contact the reporters on this story: Boris Korby in New York at bkorby1@bloomberg.net; Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net
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