Bondholders to sue Deutsche Bank

Oil Barrels

A group of minority bondholders of Eike Batista's bankrupt Brazilian oil company are suing Deutsche Bank over allegations that the bank shut them out during the oil firm's funding negotiations.

The Daily Telegraph reports that a lawsuit filed in New York on Friday alleged that Deutsche Bank, the trustee for $3.6bn of Óleo e Gás's defaulted bonds, engineered a deal that ensured majority noteholders would recover 3.5 times more money than their smaller counterparts.

The bonds were issued by an Austrian subsidiary of Óleo e Gás. The company, owned by former billionaire Eike Batista and formerly known as OGX, filed for Latin America's largest-ever bankruptcy in October.

'This is really a dispute between two bondholder groups that is pending before Brazilian courts', Deutsche Bank said in a statement. 'We believe this suit is without merit, and Deutsche Bank intends to vigorously defend itself'.

To access the complete Daily Telegraph article hit the link below:

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