OSX 3 gets bondholder approval for action in connection with default

By Jennifer Chiou

New York, Dec. 29 – OSX 3 Leasing BV senior secured callable bond trustee Nordic Trustee ASA gave notice that bondholders gave approval to initiate bankruptcy proceedings against the company’s charterer and charter guarantor or seek enforcement actions if the charterer does not cure a payment default by the Dec. 23 deadline, according to a filing from the trustee.

There were sufficient holders to form a quorum, and the proposed resolution obtained 100% of the votes.

As reported, the trustee said the charterer failed to make an Oct. 31 invoice payment due Dec. 1. As a result, it is in default under the charter contract.

Nordic Trustee was also seeking guidance from the bondholders on how to use $7.5 million held in a retention account, including whether those funds should be applied toward a $16.78 million interest payment due Dec. 22.

According to prior notice, the trustee suggested that none of the retention account funds be applied toward the interest payment because it is not clear whether the charterer will continue to make payments under its contract, meaning bankruptcy proceedings or enforcement actions may be necessary.

In addition, the trustee previously said that OSX 3 may be unable to fund working capital costs that are critical to the bondholders’ interests because it does not have any funds available to it.

Nordic Trustee specified that the company failed to pay independent director invoices, leaving the payments to be made by the trustee out of available funds.

As a result, the trustee also asked bondholders to authorize it to pay amounts deemed necessary to protect the interests of the bondholders. The trustee proposed that €3.2 million of segregated funds related to the implementation of the company’s restructuring be applied toward the critical payments.

The bondholder meeting took place on Dec. 23.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.