By Jeb Blount
RIO DE JANEIRO Dec 18 OSX Brasil SA expects a
deal in the coming days to delay an interest payment on bonds
sold to finance an oil production ship, a move that will help
the ailing Brazilian shipbuilder move ahead with a restructuring
plan, a senior executive said on Wednesday.
A deal will allow OSX, controlled by tycoon Eike Batista, to
put off a Dec. 20 interest payment on $500 million of 9.25
percent bonds due in 2015, Chief Financial
Officer Claudio Antonio da Silva Zucker said at the sidelines of
an event in Rio de Janeiro.
Reuters reported on Dec. 5 that 95 percent of the holders of
the securities had agreed to delay the Dec. 20 payment, worth
about $11.6 million. One of the conditions is that OSX give up
control, but not ownership, of the OSX-3 ship that secured the
bonds to a captain and crew under the control of creditors,
sources said at the time.
OSX, which operates a shipyard north of Rio de
Janeiro, last month filed for protection from creditors on
liabilities of 5.34 billion reais ($2.30 billion). OSX, part of
Batista's troubled Grupo EBX, filed for bankruptcy after Oleo e
Gas Participações SA, formerly known as OGX Petroleo
e Gas Participações, filed for bankruptcy Oct. 30.
Oleo e Gas' failure to produce as much oil as expected at
its first offshore oilfield, Tubarão Azul, led to the meltdown
of EBX and nearly wiped out Batista's fortune, once worth about
$30 billion. That undermined his ability to finance other
companies in his group with capital needs as they tried to
transform from start-ups to revenue producing concerns.
OSX gets all its revenue from leasing oil production ships
to Oleo e Gas Participações.
OSX shares fell 4.8 percent on Wednesday to 0.20 real, while
the price on the OSX bonds fell half a cent to 86 cents on the
The bankruptcy petition left OSX's ship-leasing unit, which
owns three floating, production, storage and offloading (FPSO)
ships, out of the petition as it seeks buyers for the ships and
deals with bondholders and banks that financed them.
A deal to sell the OSX-2 FPSO, which is in storage in
Malaysia, could be complete in the first half of 2014, Zucker
said. OSX is renegotiating its $263,000 a day lease-fee on the
OSX-1 in Tubarão Azul he added.
The OSX-3 started output in Oleo e Gas Participações'
Tubarão Martelo field earlier this month, and oil production
from the field is sufficient to cover its lease, OSX Chief
Executive Officer Euchério Rodrigues said at the event.
OSX is also in talks with construction and engineering
companies to lease space at its shipyard at the Port of Açu. The
port is controlled by Prumo Logística SA, formerly
known as LLX Logística SA.
Control of Prumo, EBX's former port operator, was sold by
Batista earlier this year to Washington-based EIG Global Energy