OSA Goliath vessel arrested in Aruban waters at bond trustee's request

By Kali Hays

New York, March 17 - OSA Goliath Pte. Ltd. bond trustee Norsk Tillitsmann ASA said the OSA Goliath vessel was arrested in Aruban waters on Friday at the trustee's request.

The trustee "initiated the arrestment process with the purpose of preserving the interests of the bondholders and after receiving instructions from a majority of the bondholders" and is "currently preparing for the sale of the vessel," according to a Saturday notice to bondholders from the trustee.

As previously reported, the assets of OSA Goliath parent Oceanografia SA de CV were seized by the Mexican government under Mexican criminal procedure law, but the vessel was left in international waters.

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% senior secured bond issue.

Norsk Tillitsmann also said earlier this month that OSA Goliath is in default on the 12% bonds and that payment of the $215.38 million principal, interest and make-whole premium due on the bonds was accelerated.

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 as trustee over the company's shares to appoint a receiver for the shares in Singapore, effectively removing Oceanografia from its control over OSA Goliath.

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

Oceanografia is a Mexican offshore oil engineering services company.

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