Batista’s OSX Jumps on Debt Agreement, Oil Platform: Rio Mover
OSX Brasil SA (OSXB3), the shipping company controlled by entrepreneur Eike Batista, rose for the first time in four days after reaching a debt settlement with one of its main suppliers and after an oil platform reached Brazil.
OSX climbed 2.5 percent to 1.25 reais at the close of trading in Sao Paulo, paring this year’s decline to 88 percent. The benchmark Ibovespa dropped 1.5 percent today.
The company reached an agreement to settle its debt and terminate a contract with Acciona SA (ANA) for constructing a shipyard, OSX said in an Aug. 23 regulatory filing after markets closed. In the same filing, OSX said its OSX-3 floating production, storage and offloading vessel, or FPSO, was in Brazilian waters. The platform arrived in Rio de Janeiro on Aug. 24 from Singapore, according to Bloomberg vessel tracking data.
“The agreement opens space for a possible sale of the company,” Joao Pedro Brugger, a portfolio manager at Leme Investimento, said in a phone interview from Florianopolis, Brazil. The Acciona accord is crucial because “not having anybody complaining about debt opens the way for a possible deal,” he said.
OSX last month hired Credit Suisse AG to look at potential asset sales as it seeks to redefine its business strategy after Batista’s OGX Petroleo & Gas Participacoes SA (OGXP3), its main client, said July 1 that it may shutdown its only producing field next year. OSX in May had announced that it was cutting back plans to build the shipyard. In the Aug. 23 filing, OSX said that Acciona was its biggest supplier at the shipyard, without saying how much it owed the Spanish constructor.
OSX also said in the filing that Marcelo Maia Gomes, who previously worked at a corporate restructuring advisory company, will replace Carlos Eduardo Sardenberg Bellot as chief executive officer. Gomes, who has degrees in business administration and mechanical engineering, was advising the company on cutbacks as general director of Alvarez & Marsal Brasil, according to OSX’s filing.
The contract to use the FPSO at a field operated by OGX guarantees $500 million in dollar-denominated bonds due in 2015. Malaysia’s Petroliam Nasional Bhd., or Petronas, owns a minority stake in the field where the vessel is to be deployed.
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