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Petrobras engineering firm contractor files for bankruptcy

Friday, March 27th 2015 - 08:07 UTC
Full article 3 comments
Grupo Galvao is one of the first to break under the strain of canceled projects and suspended payments as a result of the broad police probe into Petrobras Grupo Galvao is one of the first to break under the strain of canceled projects and suspended payments as a result of the broad police probe into Petrobras
“From the end of 2013 there were repeated delays in payments owed by Petrobras for several contracts”, said the company in a release “From the end of 2013 there were repeated delays in payments owed by Petrobras for several contracts”, said the company in a release

Brazilian engineering firm Galvao Engenharia said on Wednesday it filed for bankruptcy protection, as state-run oil company Petrobras cut off payments due to a broad corruption scandal in which it had been implicated.

 The private company is one of the first to break under the strain of canceled projects and suspended payments as a result of the broad police probe into corruption at Petrobras, known as Operation Car Wash.

“From the end of 2013 there were repeated delays in payments owed by Petrobras for several contracts. This was combined with curbed access to credit markets for the construction sector, strongly impacted by Operation Car Wash,” Grupo Galvao, parent company of Galvao Engenharia said in a statement.

However Petrobras said it was up to date with its contractual obligations, adding that claims by contractors for additional payments are evaluated but do not constitute debt on the part of Petrobras.

Grupo Galvao also said that Galvao Participacoes, linked to Galvao Engenharia, had filed for bankruptcy.

Galvao Engenharia was one of the 23 companies blacklisted by Petrobras in December, with the oil company cutting off payments and banning the firms from bidding for future contracts.

Grupo Galvao said it has cooperated with the authorities and was never involved in the alleged corruption scheme in which a cartel of engineering and construction firms overcharged Petrobras for work, with the excess being used for bribes.

Top Comments

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  • ChrisR

    I don't believe they were NEVER involved: they would not have gotten the contract unless they paid Lula huge money.

    Morte de Lula em 2015!

    Mar 27th, 2015 - 07:14 pm 0
  • Brasileiro

    That the people guilty of corruption are punished in an exemplary, but Brazil must protect our companies that are the bastions of our technological development.
    US companies will not enter the rich market of oil and gas in Brazil! We will not let that happen!

    USA OUT!

    Mar 28th, 2015 - 01:59 pm 0
  • Jack Bauer

    @2 brASSHOLE,
    “US companies will not enter the rich market of oil and gas in Brazil! We will not let that happen! ”

    Rather broad, ignorant statement,,,especially considerng that there are already quite few foreign companies in Brazil working in this field....Exxon, and Shell are just two of them. And who in the hell are WE, that will not let that happen ? you and the 13% petista idiots ?
    If PB wants to extricate itself from the shite it's got itself into, with a lot of help from the PT, it will either need at least 10 years to recover, OR, it will need foreign investment.....but don't think that anyone will be stupid enough to invest in PB without demanding a piece of the action, and of the company.

    Mar 28th, 2015 - 10:04 pm 0
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