Mexico’s Oro Negro defaults on contract and charter rates covenants

By Caroline Salls

Pittsburgh, Nov. 5 – Oro Negro Drilling Pte. Ltd. is in default of covenants requiring it to procure day rates under drilling contracts and bareback charters in accordance with thresholds set in the agreement for its senior secured callable bond issue 2014/2019, according to a notice from bond trustee Nordic Trustee ASA.

The trustee said the default followed a reduction of day rates for rigs agreed between Oro Negro and Pemex-Exploracion y Produccion.

Nordic Trustee said it is in talks with an informal bondholder committee and the company and has not declared an event of default under the bond agreement.

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

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