Oro Negro: Bondholder moves a ‘clear violation’ of law, public policy

By Caroline Salls

Pittsburgh, Sept. 27 – Oro Negro Drilling Pte. Ltd. said it believes that actions taken by bond trustee Nordic Trustee ASA and an informal group of holders of the company’s 7½% senior secured bond issue 2014/2019 “represent a clear violation of applicable Mexican law and a serious violation of Mexican public policy with regards to orderly dealings of stakeholders in these kinds of situations.”

As previously reported, the bondholders instructed the trustee to declare an event of default on the bonds and take control over the issuer and its rig owners in light of Perforadora Oro Negro, S de RL de CV’s concurso mercantil filing.

According to a Wednesday news release, Perforadora filed for concurso mercantil in order to protect its business and provide the necessary breathing room to reach a value-maximizing solution for the company and its stakeholders.

Oro Negro said it further continues to believe that the proposal made by Petroleos Mexicanos, which is supported by the bondholders, does not represent an acceptable path forward for all stakeholders without addressing and creating a sustainable capital structure.

“We are concerned that the actions taken by the bond trustee and the ad hoc group, if continued, will damage the company and Perforadora’s business to the significant detriment of all parties and will result in undesired cross-border litigation,” the company said in the release.

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

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