May 16 (Bloomberg) -- OSX Brasil SA, former billionaire Eike Batista’s shipbuilder that filed for bankruptcy protection last year, is seeking approval to pay back creditors over 25 years in a restructuring plan released today.
The company is also looking for partners to finish building a shipyard at the Acu port in Rio de Janeiro state and may seek more funds to stay afloat, it said in the plan delivered to a Rio court. Approval is “essential” for the company to sell two production vessels to help pay debt, it said. Debt, including money owed by a leasing unit excluded from the judicial process, is calculated at $2.6 billion.
OSX sought protection from creditors last year after Batista’s oil company, the shipbuilder’s main client, abandoned fields it had previously declared commercial. OSX began building floating production vessels for its sister company before Batista tested the geology at offshore exploration wells that struck oil but failed to maintain production.
“It’s essential that the OSX Group restructures its debt with creditors to achieve the desired financial and operational recovery,” the company said in the regulatory filing. “The goal is to develop the shipyard activities and with that generate cash to fulfill the company’s obligations.”
OSX proposed to repay creditors in 22 annual installments after a three-year grace period, it said in the plan.
The company’s shares rose 2.4 percent to 42 centavos in Sao Paulo today. The stock is down 31 percent so far this year after losing 94 percent last year.
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