RIO DE JANEIRO, Jan 5 (Reuters) – A bunch of Japanese shipbuilders led by Mitsubishi Heavy Industries Ltd (MHI) plans to exit its 30 % stake in Brazilian shipbuilder Ecovix and declare the funding as a loss, Valor Economico newspaper reported on Tuesday.

The group led by MHI plans to promote its stake in Ecovix, which it purchased in 2013 for about $300 million, to Jackson Empreendimentos for a “symbolic amount,” Valor reported.

Jackson Empreendimentos owns the remaining 70 % of Ecovix, the controller of Estaleiro Rio Grande (ERG) shipyard within the Brazilian metropolis of Rio Grande. In addition to MHI, the Japanese group consists of Mitsubishi Co and the Imabari, Namura and Oshima Shipbuilding firms, the newspaper reported.

MHI’s Brazilian unit didn’t reply calls requesting remark.

The group was introduced into ERG, based in 2010, to supply know-how and administration experience and assist the shipyard overcome high quality issues, price overruns and delays.

The sale comes as ERG’s contract to construct eight hulls for floating manufacturing ships generally known as FPSOs for Brazil’s state-run oil firm Petroleo Brasileiro SA is in jeopardy. Its contract to construct drillships for Sete Brasil, one other troubled Brazilian shipbuilder, can also be doubtful.

Ecovix is a part of the identical Jackson Empreendimentos group that controls Engevix, a Brazilian building firm caught up in a large price-fixing, bribery and political kickback scheme at Petrobras, because the oil firm is often recognized, Valor reported. Engevix has had two executives jailed for his or her position within the scandal.

ERG’s issues have led to the layoff of 1000’s of individuals and the suspension of most work. The shipyard is present process a restructuring geared toward discovering a method to cut back 1.7 billion reais ($425 million) owed to purchasers and suppliers, the newspaper reported.

Just to finish the hulls, ERG wants about 1.5 billion reais in new capital, Valor reported, and MHI’s departure from Ecovix might make it simpler to discover a companion to revive the corporate.

Ecovix and Engevix didn’t reply to calls searching for remark.

China Offshore Oil Engineering Company (COOEC) is a attainable companion for ERG, Valor reported. COOEC is a part of the identical group that features China National Offshore Oil Corp, which owns a stake within the large Libra prospect in Brazil’s offshore Santos basin.

($1 = 4.00 Brazilian reais) (Reporting by Jeb Blount; Editing by Will Dunham)

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