OSA Goliath bond trustee proposes $15 million fee funding mechanism

By Caroline Salls

Pittsburgh, March 7 - OSA Goliath Pte. Ltd. bond trustee Norsk Tillitsmann ASA is asking bondholders to approve a funding mechanism "for the purpose of meeting fees, costs, expenses and disbursements incurred in connection with the protection, preservation and/or enforcement of the bondholders' rights and pursuing recoveries," according to notice from the trustee.

Specifically, Norsk Tillitsmann said it is asking the bondholders to approve a potential funding structure that will include the borrowing of a loan by OSA Goliath or issuance of bonds offered for subscription to existing bondholders and/or a limited recourse loan provided to the trustee by some or all of the bondholders.

The total principal par value of the funding bond issue and the principal amount of the bondholder loan may not exceed $15 million, the notice said. However, holders of more than 50% of the bonds can increase that maximum amount.

The loan and bond issue will be subject to an interest rate of 15%.

Norsk Tillitsmann is also seeking approval to act on behalf of bondholders in connection with negotiating amended facility and/or bond agreements and negotiating intercreditor agreements.

The bondholders' meeting is scheduled for March 24.

OSA Goliath is a subsidiary of offshore oil engineering services company Oceanografia SA de CV.

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