The problems both at scandal-hit Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR.A) and for the Brazilian government are on the rise. The layer of corruption keeps on unveiling, adding up the number of government officials, who are involved in the matter. Over a million of Brazilians have come out on streets to protest against President Dilma Rousseff’s governance.
Extension of deadline
Meanwhile, things are further getting worse for Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR.A), which tanked by nearly 4% to close at $5.01, level near its 52-week lows. As per a Brazilian newspaper report, the company is in talks with its creditors to extend the deadline for publishing the audited results. The company is also trying to avoid a probable acceleration of payments to its creditors. Newspaper Folha de S. Paulo claimed that Petroleo Brasileiro Petrobras SA (ADR)(NYSE:PBR.A) has engaged in discussions with nearly 15 banks and investment firms over the last few weeks so as to negotiate for an extension of the deadline.
The company has been able to postpone the release of its audited results already and, therefore, anymore further delay would confirm the fears attached with the company. It is speculated that Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR.A) has not kept accurate accounts of its business, which might mean lesser scandal related payments than actuals. The action of the company will only add up to the pessimism for investors.
From the court to roads
The state of affairs of the government-run company and the possibility of Brazil sinking into recession has angered the people of the nation, who took to streets to protest Ms. Rousseff, the Wall Street Journal reported. Earlier Brazil’s Supreme Court had approved investigation of almost 50 politicians, most of who belong to Ms. Rousseff’s ruling coalition. In view of the nationwide mass protests and the way Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR.A) is taking its matters ahead, it is doubtful things are near to improvement.