OSA Goliath parent's assets seized; vessel now in international waters

By Caroline Salls

Pittsburgh, March 11 - OSA Goliath Pte. Ltd. bond trustee Norsk Tillitsmann ASA said the assets of OSA Goliath parent Oceanografia SA de CV were seized by the Mexican government under Mexican criminal procedure law, but the trustee does not think OSA Goliath's vessel has been seized, according to a notice to bondholders.

The trustee said the scope of the seizure is still being kept confidential.

According to the notice, the OSA Goliath vessel is currently in international waters, and the process for selling the vessel is being assessed.

Norsk Tillitsmann said the vessel was moved in compliance with bond and security agreement documents, clearance for the vessel to leave Mexico was obtained and the removal was necessary to safeguard the vessel, which is an important asset collateralizing the company's 12% bond issue.

To the extent that any parties unrelated to Oceanografia has a legitimate interest in the vessel or property on the vessel, the trustee said those "interests will be dealt with in due course."

The trustee said in a Feb. 18 news release that it had identified several events which may constitute events of default under the bond agreement, including negotiations on rescheduling the parent company's corporate bond debt, the parent company's payment default on its corporate bond debt and OSA Goliath's request for a postponement of its next interest payment.

In addition, Norsk Tillitsmann said the Minister of Public Function of Mexico determined that Federal Dependencies and Entities, the General Federal Attorney and Mexican States must not accept or propose any contract with Oceanografia for a period of one year, nine months and 12 days.

This determination may also constitute an event of default under the bond agreement.

As previously reported, the trustee said earlier this month that OSA Goliath is in default on its 12% senior secured bond issue, and payment of the $215.38 million principal, interest and make-whole premium due on the bonds was accelerated.

The trustee said the default stemmed from a growing concern for the company's financial stability and a response to a letter from Norsk Tillitsmann that made it clear that OSA Goliath parent Oceanografia failed to pay charter hire for the company's offshore supply ship and is in payment default of the corporate bond issue.

The trustee subsequently exercised its rights over the company's shares to appoint a receiver for the shares in Singapore, effectively removing Oceanografia SA de CV from its control over OSA Goliath.

The trustee also replaced OSA Goliath's board of directors with independent directors. Norsk Tillitsmann said the new board terminated the bareboat charter with Oceanografia and assumed control of the OSA Goliath vessel.

Oceanografia is an offshore oil engineering services company.

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