Earlier this year, an amended plan of reorganisation was approved by creditors and subsequently confirmed by the Brazilian and U.S. (Chapter 15) courts, pursuant to which, among other things, $800 million was restructured into convertible debt. A complex and detailed waterfall determines the allocation of proceeds from such M&A transaction.

Constellation is a market-leading provider of oil and gas drilling and FPSO services in Brazil and other developing markets. It filed for judicial reorganisation (recuperação judicial) in Brazil in December 2018, in what has been among Brazil’s largest and most complex bankruptcy filings to date.