OSX Brasil gets six-month stay extension from Rio de Janeiro court

By Kali Hays

New York, Sept. 18 – OSX Brasil SA received a 180-day extension of its recovery plan stay period from the 3rd Corporate Court of the Judicial District of the State of Rio de Janeiro, according to a news release.

As previously reported, the company filed its judicial recovery plan with the Corporate Court May 20 in order to allow the OSX Group to overcome its economic-financial crisis, implement the measures applicable to its operational reorganization, comply with the interests and preserve the rights of creditors and shareholders.

In order to achieve the desired financial and operational regeneration, the company said it is vital that the OSX Group restructure the debts contracted by pre-bankruptcy creditors through the concession of deadlines and special payment conditions for its obligations.

As the holding company of OSX Construcao Naval SA, OSX said it is again reviewing the business plan related to the development of Unidade de Construcao Naval do Acu (UCN Acu) as part of the resizing of its operational activities, while maintaining activities related to naval construction.

In this context, OSX said it will seek the formalization of partnerships for the development of the area encompassed by UCN Acu, including through leasing and the formation of joint ventures with interested companies.

Also, OSX Group is renegotiating its obligations assumed in the context of OSX-3 bonds, the OSX-3 charter agreement and the OSX-3 operation agreement to allow the continuity of use of floating, production, storage and offloading unit (FPSO OSX-3) for exploration of the Tubarao Martelo Field.

The plan also includes partial demobilization of OSX Leasing, the continuity of the charter and exploration of FPSO OSX-3 and the disposal of other fixed assets.

In order to allow OSX to obtain the capital necessary to proceed with its activities, as well as the development of its business plan, the company said upon filing the recovery plan that it may try to obtain new financing, including through the securitization and/or monetization of restructured OGX shares.

OSX Brasil is a Rio de Janeiro-based oil and gas holding company.

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