NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobras (PBR.A) are falling, down 3.85% to $7.99 in late-morning trading on Thursday, as the Brazilian government reportedly tries to work out a plan to help the troubled state-run oil company borrow money through an offering of asset-backed securities before the the year end, according to Reuters.
Brazil's mines and energy minister Edison Lobão said the rescue plan would help Petrobras fund exploration and other operations next year.
Lobão added that the plan would involve the $3.4 billion that state-controlled power utility company Eletrobras (EBR) owes the oil company. That amount will be used as collateral for the debt issuance, with the government guaranteeing two-thirds of the deal while Eletrobras guarantees the rest.
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Petrobras is at the center of Brazil's biggest corruption and money laundering scandal as federal prosecutors prepare to indict 11 executives at six of Brazil's largest engineering firms for paying billions of dollars in bribes, Bloomberg reported.
Two former Petrobras directors are among the two dozen people arrested for their involvement, Bloomberg noted.
Recently, Brazil's top prosecutor called for the company's management to step down in light of the recent corruption scandal, Reuters reported.
Petrobras is a Brazil-based integrated oil and gas company, operating through seven segments.