OSX-OGX Joint Bankruptcy Cases Blocked by Court: AccionaEmma Ross-Thomas and Rodrigo Orihuela
A Brazilian court blocked an attempt by two of Eike Batista’s companies to have their creditor protection cases considered jointly at the request of Acciona SA, the Alcobendas, Spain-based company said.
The injunction was granted, an Acciona spokeswoman, who can’t be named in line with company policy, said by telephone. Acciona is owed about 100 million euros by OSX Brasil SA, Batista’s shipbuilding startup. The decision, reported today by newspaper O Globo, couldn’t immediately be verified in records at the 14th Appeals Court of Rio de Janeiro State.
OGX Petroleo & Gas Participacoes SA, Batista’s oil company, and OSX were seeking to couple their so-called judicial recovery cases to speed up the process, two people familiar with the matter said last month. Batista created OSX to supply ships to OGX, which is struggling to produce oil after slashing reserve estimates and returning blocks to the government. Two of OSX’s platforms are in Brazil while a third is docked in Malaysia.
Sergio Bermudes, a lawyer for OGX, had no immediate comment when contacted by Bloomberg. OSX’s press department didn’t respond to an e-mail seeking comment on the case.
Acciona was hired by OSX as part of the construction of its shipyard in northern Rio state. OSX filed for protection Nov. 11 and didn’t include its leasing unit, through which it owns the three oil platforms, as part of the judicial recovery.
“They might be asking to have the cases run separately to protect OSX assets from OGX,” Leonardo Theon de Moraes, a bankruptcy lawyer at Sao Paulo-based Mussi, Sandri & Pimenta Advogados, said by telephone. “If I were an attorney for some bondholders or creditors, I would ask for” OSX assets to help repay loans, he said.