Brazil's OSX board approves terms of unit's bond restructuring

SAO PAULO Tue Mar 18, 2014 6:33pm EDT

A worker walks past in front of FPSO OSX-1, the first floating production, storage and offloading unit in OSX's fleet, anchored at the port of Rio de Janeiro November 17, 2011. REUTERS/Sergio Moraes

A worker walks past in front of FPSO OSX-1, the first floating production, storage and offloading unit in OSX's fleet, anchored at the port of Rio de Janeiro November 17, 2011.

Credit: Reuters/Sergio Moraes

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SAO PAULO (Reuters) - The board of OSX Brasil SA (OSXB3.SA), the shipbuilder controlled by former Brazilian billionaire Eike Batista, approved key terms of the restructuring plan for its leasing unit, according to a filing on Tuesday.

Last week the unit, OSX 3 Leasing BV OSXBCO.UL, reached a preliminary agreement to pay creditors more interest on $500 million of defaulted bonds, and said it would retroactively raise the coupon to 13 percent from 9.25 percent.

The plan still needs formal approval from creditors.

OSX Brasil filed for bankruptcy protection in November after the collapse of OGX Petróleo e Gás Participações SA, Batista's oil company and OSX's only customer. OGX, which was renamed Óleo e Gás Participações SA (OGXP3.SA), also stopped payments on $3.6 billion of bonds, the largest-ever corporate default in Latin America.

(Reporting by Luciana Bruno; Writing by Caroline Stauffer)

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