The grounds of the future Açu Shipbuilding Unit (UCN Açu), image: OSX
RIO DE JANEIRO, May 16 (Reuters) – Brazil’s OSX Brasil SA , the bankrupt shipbuilder controlled by former billionaire Eike Batista, presented a plan to a Brazilian judge on Friday to pay $2.6 billion ($1.2 billion) in debt over 25 years.
Under the plan, OSX will start repaying the bulk of its debts after three years, the company said in a statement. It also allows the company to seek new capital, including the sale of stakes to new investors.
The company said it hopes to generate new revenue by finding partners interested in using areas it owns at the giant Port of Acu complex north of Rio de Janeiro.
Rio de Janeiro-based OSX filed for bankruptcy protection in November as part of the unraveling of the once high-flying EBX Group of oil, electricity, port, shipbuilding and mining companies that Batista assembled during an economic boom in Brazil that fizzled in 2011. The group, once worth more than $60 billion, has seen its value nearly evaporate in the last two years.
Despite the plan’s three-year grace period for repayment, OSX Brasil will set aside 25,000 reais to be divided among all creditors within a year of the plan’s approval. This will repay obligations to about half the individuals and companies owed money by OSX Brasil, the statement said.
Another 80,000 reais will be paid within a year to creditors of OSX Brasil subsidiary OSX Construcao Naval, covering about half the individuals and companies owed money by the unit. All creditors of OSX Brasil unit OSX Servicos Operacionais, will be paid within a year.
The $2.6 billion owed by OSX Brasil includes debts with the company’s oil-production-ship-leasing unit that was not included in the company’s November filing for bankruptcy protection with a Rio de Janeiro court
OSX Brasil gets all of its revenue from the lease of oil production ships to Oleo e Gas Participacoes SA. Oleo e Gas is, formerly known as OGX Petroleo e Gas Participacoes SA, is the oil and gas unit of Batista’s EBX Group. When Oleo e Gas failed to meet production targets, it filed for bankruptcy protection in October 2013 and was followed by OSX Brasil less than two weeks later.
At the time of its bankruptcy filing, OSX sought to restructure a debt of 5.34 billion reais ($2.42 billion).
($1 = 2.21 Brazilian reais) (Reporting by Juliana Schincariol, Paulo Prada and Jeb Blount; Editing by Lisa Shumaker and William Hardy)
UK-based Bibby Marine has contracted with Spanish shipyard Armon to build the world’s first fully-electric Commissioning Service Operation Vessel (eCSOV), marking a significant milestone in maritime decarbonization. The vessel will...
The cargo ship Vezhen did damage a subsea cable linking Sweden and Latvia last month but it was an accident, not sabotage, a Swedish prosecutor said on Monday, adding that the Maltese-flagged vessel had been released.
By Nidhi Verma NEW DELHI, Feb 1 (Reuters) – India will set up a 250-billion-rupee ($2.9-billion) maritime development fund for the long-term financing of the country’s shipbuilding and repair industry, Finance Minister...
February 1, 2025
Total Views: 630
Sign Up Now for gCaptain Daily
We’ve got your daily industry news related to the global maritime and offshore industries.
JOIN OUR CREW
Maritime and offshore news trusted by our 108,987 members delivered daily straight to your inbox.
Your Gateway to the Maritime World!
Essential news coupled with the finest maritime content sourced from across the globe.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.