Sep 13, 2020

Sete Brasil's creditors will have a meeting and general meeting next Tuesday (9/15) to decide on the latest approvals of their judicial reorganization process. The deadline established for the company to comply with the requirements of the agreement signed with Petrobras and conclude the operation is until September 30th. According to sources consulted by Petróleo Today, the conclusion of the operation depends only on the approval of Banco do Brasil, since the other creditors reached a consensus on the final settlements. If Banco do Brasil gives its approval, executives involved in the process believe that it will be possible to close all agreements and contracts, without the need to change the deadline established by the oil company in June. This time, representatives of Sete Brasil are betting that there will be no other setback. Should Banco do Brasil approve the latest resolutions, a race against time will begin to complete all bureaucratic issues involving the exchange of documents and signatures, in addition to the release of guarantees. The list of main creditors is formed by Banco do Brasil, Bradesco, FI-FGTS, FGCN, Caixa Econômica, Santander and Canvas, which bought the Itaú BBA credit. Completion of the process will therefore require the signing of a series of agreements. Contracts are foreseen with creditors, Petrobras and Magni Partners, which presented a proposal to acquire the probes Urca, Frade, Arpoador and Guarapari from Sete Brasil for US $ 296 million. On the side of Magni Partners, the process also moves forward and gains financial support, even though the Covid-19 pandemic has impacted the integrity verification work of the rigs, causing delays in the schedule. The group hired Morgan Stanley as a financing agent and obtained financial support from the Mubadala group. Magni Partners' offer to acquire Sete Brasil's four rigs for US $ 296 million was approved by Sete Brasil's creditors in October 2019, marking an important step in the Brazilian group's judicial reorganization plan. The sale operation is associated with charter contracts with Petrobras, with daily fees of US $ 299 thousand and a ten-year term. The construction of the drill ships Arpoador and Guarapari is in charge of the Jurong Aracruz shipyard, while the semi-submersibles Urca and Frade are under the tutelage of Brasfels. With the agreement open, the works of the four units remain practically at a standstill. After the effective closing of the process and the release of the first resources to resume work at the shipyards, sector executives estimate that it will take at least one year for the delivery of the Arpoador drillship, the first equipment to be completed. The judicial recovery process of Sete Brasil is pending at the 3rd Business Court of the Court of Justice of Rio de Janeiro. Created in 2010 to meet the demand for Petrobras' rigs in the pre-salt layer, Sete Brasil signed charter contracts with the oil company for the construction of 28 equipment capable of operating in 3,000 m of water depth. The group accumulates a liability of about US $ 5 billion. Source: PetroleHoje We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here