| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers O > Headlines for OSX Brasil SA > News item |
OSX settles $1.5 billion of claims via plan support agreement with OGX
By Caroline Salls
Pittsburgh, Dec. 30 - OSX Brasil SA and its controlled companies signed a plan support agreement with Oleo e Gas Participacoes SA, OGX Petroleo e Gas SA, OGX Austria GmbH and OGX International GmbH, according to an OSX news release.
Under the agreement, OSX's claims resulting from the termination of charter and operations agreements related to the FPSOs OSX-1 and OSX-2 and the termination of the leasing agreement of the WHP 2 platform were recognized and settled and will be treated equally with all other unsecured creditors of the OGX Group in its judicial reorganization.
OSX said its claims were agreed in the total amount of $1.5 billion. Of that amount, $414 million are related to the termination of the charter and operation agreements of the FPSO OSX-1; $557.3 million are related to the termination of the charter and operation agreements of the FPSO OSX-2; and $528.6 million are related to the termination of the leasing agreement of the WHP 2 platform.
As a result of their treatment as unsecured claims, OSX said its claims will be converted into equity of OGX. If the transaction is implemented as currently expected, OSX will hold roughly 7% of the restructured OGX through its controlled companies.
In addition to the settlement of the OSX claims, the company said the plan support agreement is crucial to its operations because, to the extent that major client OGX restructures its debt, OGX will have the ability to fulfill its obligations towards OSX.
The agreement is subject to the implementation of the transaction between the OGX Group and the noteholders representing the majority of the group's outstanding bonds. If that transaction is not implemented, the agreement between OSX and the OGX Group will also terminate, the release said.
OSX Brasil SA, a Rio de Janeiro-based oil and gas holding company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.