OSX Brasil unit misses Dec. 20 interest payment; negotiations ongoing

By Caroline Salls

Pittsburgh, Dec. 20 - OSX Brasil SA subsidiary OSX 3 Leasing BV missed the interest payment due Dec. 20 on its senior secured bonds, according to a notice to bondholders from trustee Norsk Tillitsmann ASA.

OSX Brasil said in a Friday news release that the company was in negotiations regarding the interest payment.

In a letter from OSX 3 Leasing and OSX 3 Holding BV included in the trustee's notice, OSX cited the ultimate parent company's financial condition and judicial recuperation proceedings, a delay in the Charterer achieving "first oil" and the delay's impact on the timing of a payment due to the company in connection with a charter contract.

Because of these factors, OSX 3 said it did not have the funds to make the payment on the due date.

The companies said they expected to have enough funds to make the payment in late January.

In addition, OSX 3 said it would not be in a position to make a required transfer to a retention account on Jan. 20, but that the transfer should be made in February using funds from the charter contract.

OSX 3 Leasing is a subsidiary of OSX Brasil SA, a Rio de Janeiro-based oil and gas holding company.

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