Mexico’s Oro Negro asks 7˝% noteholders to extend liquidity access

By Wendy Van Sickle

Columbus, Ohio, Sept. 21 – Oro Negro Drilling Pte. Ltd. is seeking an extension until Oct. 20 of liquidity access provisions in place under its $939,100,570 of 7˝% senior secured notes due 2019, according to a notice from bond trustee Nordic Trustee ASA.

The company said it is continuing negotiations with an ad hoc bondholder committee to modify the bond agreement in the wake of projected lower revenues and reduced cash flows in the near- to medium-term related to adjustment its drilling contracts with Petroleos Mexicanos.

Oro Negro said its working capital is constrained and that it will need the liquidity access provisions to be extended to continue operations during its negotiations with the bondholders.

Thus, bondholders are being asked to extend the interim budget period and to temporarily waive the requirement to make deposits into its debt service account.

Oro Negro has set a bondholder meeting for votes to be cast on the matter for 7 a.m. ET on Sept. 29 in Oslo.

Two-thirds of the voting bonds represented at the meeting must approve the measure in order for it to pass.

The company said questions may be directed to its financial adviser, Millstein & Co., LP (Attn: Elizabeth Abrams, 212-416-5802 or eabrams@millsteinandco.com).

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

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