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Brazilian engineering giant Grupo OAS is seeking bankruptcy protection for nine of its units amid a corruption investigation at state-controlled Petróleo Brasileiro SA (Petrobras) one of its customers.
OAS, Brazil's third-largest engineering and construction company, has filed for bankruptcy protection in a São Paulo state court.
According to a company statement, filing for court protection is the best solution to renegotiate its debts with creditors and suppliers due to its access to finance has been haighly restricted since the end of 2014. The company has about US$1.8 billion in global bonds and about BLR3.4 billion (US$1.08 billion) in local debt. OAS said in the statement:
"The company saw its credit lines offered in Brazil and abroad dry up for its operations."
OAS has also announced plans to put for sale, among others, its;
Other companies such as Alumini Engenharia SA and Galvão Engenharia SA have also filed for bankruptcy protection during the last months as the Petrobras scandal escalated. According to prosecutors, the three firms are part of the 24 companies that paid bribes to Petrobras executives and politicians in exchange for contracts.