Oleo e Gas Participacoes Sa, Brazil (fka OGXPY)

[nycrew]

Brazil's OSX, Bondholders Seek to Reach Debt Deal This Week - http://online.wsj.com/news/articles/SB10001424052702304434104579379443453878678?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304434104579379443453878678.html

RIO DE JANEIRO—Brazilian shipbuilding firm OSX Brasil SA, controlled by businessman Eike Batista, will try to reach agreements with its bondholders by the end of this week as it struggles to exit bankruptcy protection, a top executive said Wednesday.

OSX and advisers for its international bondholders plan to meet in New York Thursday and Friday to discuss a plan that could include a new payment schedule and give the company more time to meet a March interest payment, said Claudio Antonio da Silva Zuicker, OSX's chief financial officer and head of investor relations.

The talks will include the possibility of lowering the daily rate that OSX is charging sister company Óleo e Gás Participações SA for use of its OSX-3 floating, production, storage and offloading vessel, currently in operation at the Tubarao Martelo field. Óleo e Gás was formerly known as OGX Petróleo e Gás Participações SA, the flagship company of Mr. Batista's business empire.

OSX has $500 million in bonds outstanding and missed an $11.6 million interest payment in December. Its bonds, which are guaranteed by the OSX-3 vessel, mature in 2015 and carry a 9.25% coupon.

"We are in negotiations with our bondholders and with Óleo e Gás to create a package that will leave OSX up-to-date on its payments," Mr. Zuicker said.

OSX, which operates a shipyard under construction at the Port of Acu, in Rio de Janeiro state, filed for bankruptcy protection in 2013, shortly after Óleo e Gás sought protection from creditors holding more than $4 billion in debt.

The fall of Óleo e Gás, which failed to meet production expectations, sent shock waves across all of Mr. Batista's companies, and OSX was the hardest hit since the oil firm was basically its only customer.

Óleo e Gás bondholders also have been in discussions with OSX and OSX-3 bondholders since at least December 2013, a person familiar with the matter said, adding that those discussions are continuing as well.

OSX, which must present its restructuring plan in March, owns two other of the vessels which it is trying to sell to raise cash. The negotiations have been dragging out, but according to Mr. Zuicker talks with a possible buyer for one of them—the OSX-2—soon could become exclusive.

The executive declined to name the possible buyer.

The large vessels are registered abroad as part of the company's leasing arm, which is based in the Netherlands and weren't included in the bankruptcy-protection filling. The platforms have been targeted, however, by OSX creditors who fear they won't be paid.

In December, Spanish construction company Acciona SA won a court order preventing the sale of shares of OSX Leasing. Acciona had been hired to do construction work at an OSX site in the Acu Port and is owed 300 million reais ($123.9 million).

OSX has been trying to overturn the embargo granted by the Dutch court, Mr. Zuicker said.

—Emily Glazer in New York contributed to this article.

Write to Luciana Magalhaes at [e-mail]

OGXPY