Brazil: Petrobras Settles With Pimco, Investors Over Corruption Losses

Author(s): David Biller | Date: October 22, 2016 | Language: English
Source: | URL: | Type: Text

Brazil’s state-run oil company Petroleo Brasileiro SA settled four lawsuits brought by investors including Pacific Investment Management Co. after the nation’s biggest-ever corruption case torpedoed the company’s market value.
Petrobras’ board approved agreements with Pimco Total Return Fund, Janus Overseas Fund, Dodge & Cox International Stock Fund and Al Shams Investments, according to a statement filed with Brazil’s securities regulator. Petrobras will include a $353 million provision in its third-quarter financial statements to reflect the settlements as well as ongoing negotiations with other plaintiffs, according to the statement.
The world’s most indebted oil producer is laboring to right itself after a multi-year probe revealed a systematic pay-to-play scheme that siphoned money to politicians and corrupt executives. Chief Executive Officer Pedro Parente, who took over the company’s helm in June, has the tasks of resolving its pending lawsuits, trimming expenses, divesting assets, and making company management more independent to prevent government interference.

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