According to the U.S. Bankruptcy Court docket, Sao Paulo, Brazil-based OAS (fka OAS Engenharia e Participacoes) and three affiliated Debtors filed for Chapter 15 protection in the Southern District of New York, lead case number 15-10937.
The Company, which engages in the provision of civil engineering and heavy construction services, is represented by John K. Cunningham and Gregory M. Starner of White & Case. On March 31, 2015, the Company proceedings with the Bankruptcy Court in Sao Paulo, Brazil, pursuant to Federal Law No. 11,101 of the laws of the Federative Republic of Brazil. Pursuant to the Brazilian Bankruptcy Law, the Debtors are operating under Court supervision with authority similar to that of U.S. Chapter 11 debtors-in-possession.
Documents filed with the U.S. Bankruptcy Court explain, “Without the protections of section 362, piecemeal litigation and other potential actions brought by creditors or other parties would threaten to destroy the Debtors’ enterprise value and interfere with the orderly administration of the Debtors’ affairs. In re Petition of Garcia Avila, 296 B.R. 95, 114 (Bankr. S.D.N.Y. 2003) (former section 304 case finding that irreparable harm would exist by “permitting the [creditors] to execute their judgments against the bond proceeds [which would] diminish the recovery available to other creditors and possibly wreck the reorganization efforts”). It would also put at risk the chance for successful reorganization, imperiling the livelihoods of the OAS Group’s labor force and its provision of essential services to the people of Brazil and other countries. The snowball effect of the pressure to join in the ‘race to the courthouse’ further demonstrates the urgency of the requested relief.”
OAS’ Chapter 15 petition indicates total assets greater than $1 billion. Read more Chapter 11 news.