Oro Negro denies adverse effect on 11% bonds caused by rig delivery

By Toni Weeks

San Luis Obispo, Calif., Jan. 29 – Oro Negro Impetus Pte. Ltd. said that a minority bondholder for the company’s senior secured 11% bond issue due 2015 is claiming that a material adverse effect occurred when the company took delivery as planned of its new rig, the Impetus, on Jan. 22.

According to a company press release, that same bondholder requested bond trustee Nordic Trustee ASA to summon a bondholder meeting to discuss certain company matters and to request that the trustee be replaced. That summons has since been withdrawn, the company said.

According to Oro Negro, January is the seventh consecutive month of declining oil prices, and the reduced price was adequately reflected by a discount rate of 97% and the 11% coupon on the bond issuance.

Any potential interference by a bondholder in the operation and management of the company could impair the price of the bond, the company said.

According to the press release, the company’s business strategy remains the same, as it is well positioned in the market and is in negotiations for a drilling contract for the Impetus. It remains confident to its “ability to meet all obligations under the finance documents and therefore strongly opposes the statement by certain bondholders regarding the existence of a material adverse effect.”

The oil and gas services company is based in Alvaro Obregon, Mexico.

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