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Monday, May 19, 2014

Batista’s OSX Presents Restructuring Plan

Per www.globalinsolvency.com:


Mon., May 19, 2014
Eike Batista’s bankrupt shipbuilder, OSX, has presented its long-awaited restructuring plan, seeking approval to pay back its $2.6bn of debt over 25 years, the Financial Times reported. Under the proposal, Brazil’s former richest man plans to ensure the company’s survival by leasing the areas OSX owns in the vast Açu Port complex in Rio de Janeiro. It may also seek to raise additional funds, possibly through the sale of stakes in the company, OSX said in the plan it presented to a Rio court late on Friday. The shipbuilder was forced to file for bankruptcy in November last year, just over a week after Mr Batista’s oil company and its main customer requested judicial recovery after its only producing wells proved to duds. If the plan is approved, OSX will only start paying off the bulk of its debts after three years. In the meantime, it will divide R$25,000 among all creditors within a year of the plan’s approval. It will pay another R$80,000 within a year to creditors of its subsidiary OSX Construção Naval.

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