Oro Negro defaults on 7˝% bond issue; bondholders support Pemex deal

By Caroline Salls

Pittsburgh, Sept. 26 – Oro Negro Drilling Pte. Ltd. is in default on its 7˝% senior secured bond issue 2014/2019, according to a notice released by bond trustee Nordic Trustee AS.

The trustee said the default stems from Oro Negro subsidiary Perforadora Oro Negro, S de RL de CV’s voluntary concurso mercantil filing.

In a separate release, an informal group of bondholders also instructed the bond trustee to enforce account changes to block some accounts of the Oro Negro and the rig owners, as well as to enforce share charges to replace the boards of the Oro Negro and the rig owners.

In addition, the informal bondholder group reiterated its support for the latest proposal of Petroleos Mexicanos (Pemex) concerning amendments to the drilling contracts between Oro Negro and Pemex for the Primus, Laurus, Fortius, Decus and Impetus rigs.

According to the bondholder group’s release, neither the instruction letter nor the execution of the instructions affects the validity or enforceability of a Sept. 12 written bondholder resolution, under which more than 2/3 of the bondholders voted to approve an amendment to the bond agreement that would allow the company to continue to perform under the drilling contracts and implement the Pemex proposal.

The bondholders said their resolution would not require the company to make an additional investment or result in any dilution to existing equityholders, thereby ensuring the solvency of the charterer and its affiliates.

In addition, the group said the resolution gives the company the ability to implement an all-cash management incentive plan, the payments under which would have priority over any interest and amortization payments owed to the bondholders.

“Despite these reasonable terms, the company elected not to engage with the bondholders and instead initiated the concurso filing,” the bondholder group said.

Oro Negro is an oil and gas services company based in Alvaro Obregon, Mexico.

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