Batista Creditors Said to Weigh Seizures as Default Looms
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OSX Brasil SA bank creditors are considering taking possession of two oil vessels used as collateral on loans to Eike Batista’s shipbuilding company, according to six people with direct knowledge of the matter.
Banks are talking to advisers and OSX officials to evaluate whether they should seize the platforms if oil-producing sister company goes into default, which would trigger cross-default clauses on OSX debt, said the people, asking not to be named as discussions are private. OSX borrowed $1.27 billion from 12 banks including Banco Santander SA and DVB Group Merchant Bank (Asia) Ltd. and is still negotiating to avoid filing for bankruptcy protection, one of the people said.