Oro Negro 7½% senior secured bond issue reinstated to pre-drawn status

By Caroline Salls

Pittsburgh, Nov. 7 – The trustee for Oro Negro Drilling Pte. Ltd.’s 7½% senior secured bond issue 2014/2019 said in a notice released Tuesday that drawn bonds related to a missed $8.75 million October interest payment will be reinstated to holders of record as of Nov. 7.

Trustee Nordic Trustee AS said the bonds were drawn by the securities depository as a consequence of the non-payment. At that point, the status of the drawn bonds was changed to a monetary claim against Oro Negro.

However, the holders of more than 50% of the bonds instructed the trustee to reinstate them to their pre-drawing status.

According to the notice, the reinstatement is technically done by way of a 1 to 1 issuance of redelivery bonds, which cancels the drawn bonds.

Nordic Trustee said the reinstatement is being done solely to avoid bondholder uncertainty, with the added benefit that the bondholders will regain tradable bonds.

Default interest will continue to accrue.

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

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