Lupatech SA, a debt-laden Brazilian offshore oil industry products and services provider, is considering options, including a potential debt-for-equity swap with creditors, to reorganise its business.
In a securities filing published early on Monday, the Caxias do Sul-based company said options were "under study to review the company's capital structure".
Lupatech is one of several oil and gas companies, including OGX Petroleo e Gas SA and HRT Participações em Petróleo SA that have seen their share prices drop in the last year as expectations have been disappointed since the 2007 announcement of giant offshore discoveries near Rio de Janeiro.
On Oct. 10 the company failed to make a $6.79 million payment on $275 million of outstanding perpetual bonds, the latest in a series of missed payments. Lupatech also missed payments in April and July and the company has missed payments on local debt in reais.