The secured bonds sold by shipbuilder OSX Brasil SA are now being valued at a two month high. This comes prior to a bankruptcy filing that may happen as early as today.
The debt due on 2015 is worth USD500 million and its trade value had increased by USD0.10 to USD0.83 on the dollar in October alone, according to Bloomberg collated data. These debt notes are backed by the USD800 million OSX-3 vessel that is able to produce, store and offload oil. The original plan was to lease the vessel to its now bankrupt sister furm OGX Petroleo & Gas Participacoes SA to extract the oil from the Libra oil field off the coast of Brazil.
The collateral that backed the debt bonds issued had shielded the creditors of the company from losses sustained by bondholders in OGX. OGX had already defaulte on notes due 2018 worth USD2.56 billion, causing the decline in value from USD0.81 to just USD0.095 to the dollar.
The creditors of OSX have engaged the services of AlixPartners LLP to work with legal advisor Bingham McCutchen LLP for advice on opting for restructuring to improve its financial standing. This was confirmed by people with knowledge over the situation, but chose to remain anonymous as the matter was deemed private.
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