Nacala port developer files for bankruptcy

OAS, the Brazilian conglomerate which is helping to develop the port of Nacala in northern Mozambique, filed for bankruptcy this week in a Sao Paulo state court.
The filing was on behalf of nine of the group’s companies, reports Argus Media, as relayed by Club of Mozambique, which says the case anticipates the restructuring of R7bn ($2.2bn) in total debt.
The bankruptcy follows a corruption scandal involving Brazil’s state-owned Petrobras with OAS becoming the third contractor to register for bankruptcy.
“Since the start of the investigation at Petrobras, financial institutions have systematically restricted firms’ access to the resources needed for the maintenance of works,” OAS Investimentos chief executive Fabio Yonamine said, as quoted by Argus Media.
“With almost 40 years in the market, OAS felt forced to kick-start a healthy process of debt restructuring that will allow it to preserve thousands of jobs,” he said.
OAS intends selling off its stake in subsidiaries, including its oil and gas construction arm and a 24.4 percent stake in Brazilian logistics giant Invepar, to meet creditors’ claims.
It believes that by shedding assets OAS will be able to return to its core business of large-scale civil construction.
In January, OAS defaulted on around US$33 million in combined principal and interest due on bonds and long-term debt despite having around $313mn in cash.
OAS is among some two dozen firms banned from bidding on future Petrobras contracts on account of their alleged role in a massive kickback scheme that diverted funds from inflated work contracts to politicians’ coffers. The company denies any wrongdoing.
In support of Brazilian mining giant Vale, OAS Constura has been contracted to undertake the earthworks and civil construction of a coal export facility at Nacala, as well as to help develop the final 30km of a railway line linking coal-rich Tete province to the port. – Club of Mozambique/Argus Media

Comments are closed.

Website created by gorilla website development