OSX Defers Part of $125 Million Itau Loan Payment Amid Cost Cuts
Billionarie Eike Batista’s OSX Brasil SA (OSXB3) oil shipper, the worst performing Latin American stock this year, rescheduled part of a $125 million debt payment to Banco Itau BBA SA due today as it struggles to cut costs.
“The company’s financial management routine includes assessing short-term debts, whose scheduled payments the company has partly been paying and partly postponing,” Rio de Janeiro-based OSX said in an e-mailed response to questions, without disclosing any amounts or dates. Today’s deadline was to pay half of a $250 million loan from the Sao Paulo-based bank’s Nassau branch in 2012, according to a June 20 Credit Agricole SA note to clients.
OSX has plunged 85 percent this year after its main client, Batista’s OGX Petroleo & Gas Participacoes SA oil producer, repeatedly failed to meet production targets. That was the biggest drop of more than 700 Latin American stocks worth at least $100 million, according to data compiled by Bloomberg.
A judge this week issued an injunction for OSX to rehire about 300 workers it fired in May after scaling back construction of a shipyard.
OSX was created by Batista primarily to supply platforms to oil producer OGX, his flagship enterprise. OGX had its credit rating cut by Fitch Ratings last week to CCC, or seven levels below investment grade, on concern that it will run out of cash by year-end after missing production targets.
To contact the editor responsible for this story: James Attwood at email@example.com