Mexico’s Oro Negro 7˝% noteholders approve liquidity-access extension

By Wendy Van Sickle

Columbus, Ohio, Sept. 29 – Holders of Oro Negro Drilling Pte. Ltd.’s 7˝% senior secured notes due 2019 approved an extension until Oct. 20 of liquidity access provisions, according to a notice from bond trustee Nordic Trustee ASA.

At a meeting held Thursday in Oslo, enough bondholders were present to form a quorum, and 99% of the votes cast were in favor of the company’s proposal, according to the notice.

A total $939,100,570 of the bonds is outstanding.

As previously reported, 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 were asked to extend the interim budget period and to temporarily waive the requirement to make deposits into its debt service account.

Two-thirds of the voting bonds represented at the meeting had to 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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