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Image courtesy of Petrobras.

Just a day after Brazil’s Petrobras released its long delayed third quarter results investors in the debt saddled company warned it is still in default after failing to disclose write downs tied to an ongoing corruption scandal.

New York-based Aurelius Capital Management said the unaudited, incomplete third quarter results may even increase the number of bond covenants Petrobras has broken.

Aurelius told Reuters the results are not in compliance with the International Accounting Standards Board (IASB) and the company is still in default on its bonds.

“Despite its recent assurances, Petrobras remains in default on its New York-law bonds. Those bonds require Petrobras to issue financial statements that comply with IASB rules, but Note 2 to the new financial statements admits that they do not,” Aurelius’ chairman Mark Brodsky said.

In the results Petrobras noted that some of its report does not meet IASB standards, including results tied to assets that may have been overvalued due to corruption.

Petrobras said it will continue to investigate the corruption issues and adjust its third quarter results where necessary but did not provide a timetable for those adjustments.

Aurelius is reportedly trying to enlist other bondholders to declare a credit event against Petrobras.

If at least a quarter of bondholders side with Aurelius Petrobras could be forced to repay $54 billion in bonds before they mature.

Brazil’s national accounting agency said Petrobras may have overpaid by as much as $1.2 billion in transactions being investigated for possible kickbacks.

Petrobras has not commented on Aurelius’ statements.