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CMS completes OSX3 bond restructuring

15/09/2014

CMS’ London and Rio de Janeiro offices have advised OSX 3 Leasing B.V., the owners of a Floating Production Storage and Offloading unit (FPSO) in production in the Tubarao Martelo field in Brazil, on the restructuring of $500m of its bonds, and the associated restructuring of its charter arrangements with the OGX group (in judicial recovery). Houthoff Buruma (Netherlands) and Galdino, Coelho, Mendes Carneiro Advogados (Brazil) represented the OSX group on Dutch and Brazilian law issues respectively. Mattos Filho advises the parent of the OSX group, EBX and its subsidiaries. Debevoise and Plimpton also advised OSX Brasil S.A. on the restructuring aspects of the transaction.

OSX 3 Leasing B.V. is part of the OSX Brasil S.A. group, ultimately controlled by prominent Brazilian entrepreneur Eike Batista. OSX Brasil S.A. entered Brazilian insolvency proceedings in November 2013 as part of one of the largest LatAm commercial defaults ever to have occurred. CMS London and Rio de Janeiro offices have been advising on the restructuring of c$2bn debt owed by various members of the OSX Group since April 2013. The OSX3 restructuring is a key part of the OSX and OGX restructuring plans.

CMS Partner Tim Elliott says, “The completion of the OSX3 restructuring places OSX 3 Leasing B.V. on a firmer footing and is an important step in implementing the wider OSX group’s restructuring plan. I am delighted that CMS, using its international footprint, has been in a position to support the OSX group in this process.”

The CMS team consists of partners Tim Elliott (Asset Finance, London), Ted Rhodes (Energy, Rio de Janeiro) and Emma Riddle (Restructuring, London), and senior associate Phil Kennedy (Asset Finance, London).

Other firms involved include Bingham McCutcheon (led from London by James Terry and Zip Jila), Felsberg Advogados and Nauta Dutilh (OSX3 bondholders) and Cleary Gottlieb for the OGX secured creditors.

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Ted Rhodes
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Emma Riddle
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London
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Tim Elliott
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