Bondholders of Eike Batista’s shipbuilder OSX Brasil SA hired AlixPartners LLP to advise on the possible restructuring of $500 million in bonds, said two people with knowledge of the matter.
AlixPartners, which advised General Motors Co. on its restructuring when the automotive giant filed for Chapter 11 bankruptcy protection in 2009, will advise a group representing holders of OSX’s dollar-denominated notes due 2015, the people said, asking not to be identified as the contract is private.
The New York-based financial consulting firm will work with Bingham McCutchen LLP, the law firm advising OSX creditors, they said.
OSX, which Batista founded in 2009 to supply vessels and services to oil firms including sister company OGX Petroleo & Gas Participacoes SA, said on Oct. 31 it may exercise its right to request bankruptcy protection. Those comments followed OGX’s decision a day earlier to become the first Brazilian oil producer to seek shelter from creditors. OSX’s 2015 bonds, which are backed by a contract to lease a platform to OGX, fell to a record-low 74 cents on the dollar on Oct. 9.
Tim Yost, a spokesman for AlixPartners, declined to comment. OSX’s press office said it wouldn’t comment on a contract made by its bondholders.
Bingham was approaching prospective financial advisers on behalf of the creditor group after investors hired the law firm, two people briefed on the arrangements told Bloomberg News in September. Timothy DeSieno, a partner at Boston-based Bingham, didn’t reply to an e-mail and voice-mail seeking comment.
OSX and OGX were the only two of Batista’s six publicly listed companies that had issued bonds in international markets.