STXNEWS LATAM-Brazil's Lupatech mulls debt-for-equity swap

Reuters

Lupatech SA, a debt-laden Brazilian offshore oilindustry products and services provider, is considering options,including a potential debt-for-equity swap with creditors, toreorganise its business.

In a securities filing published early on Monday, the Caxiasdo Sul-based company said options were "under study to reviewthe company's capital structure".

Lupatech is one of several oil and gas companies, includingOGX Petroleo e Gas SA and HRT Participações emPetróleo SA that have seen their share prices drop inthe last year as expectations have been disappointed since the2007 announcement of giant offshore discoveries near Rio deJaneiro.

On Oct. 10 the company failed to make a $6.79 millionpayment on $275 million of outstanding perpetual bonds, thelatest in a series of missed payments. Lupatech also missedpayments in April and July and the company has missed paymentson local debt in reais.

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