OSX 3 Leasing trustee: Charter assignment ‘enforcement time’ ongoing

By Caroline Salls

Pittsburgh, Nov. 13 – OSX 3 Leasing BV bond trustee Nordic Trustee ASA said the “enforcement time” included in the company’s charter assignment is in place in light of various defaults on the bond agreement, giving the trustee the right to enforce the security created by the assignment at any time, according to a notice to holders of OSX 3’s 13% senior secured callable bond issue 2012/2015.

The trustee said its rights include termination of the charter contract.

In addition, Nordic Trustee directed all earnings payable under OSX 3’s charter contract to be paid directly to the bond trustee.

According to the notice, the trustee also reserved all rights it may have in related to outstanding defaults under the bond agreement.

As previously reported, OSX 3 announced on Nov. 4 that it issued a notice of default to a charterer in connection with the latter’s failure to make a charter invoice payment. The charterer has 15 days to make the payment before an owner termination event occurs under the charter.

Because OSX is a special purpose vehicle and the charter contract is its principal source of income, the company said the payment issue may result in a default and have a significant adverse affect on OSX 3 and its parent.

OSX 3 Leasing is a subsidiary of OSX Brasil SA, a Rio de Janeiro-based oil and gas holding company.

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