RE: Tick tick tick1 Nov 2018 08:47
Thought worth sharing again as this is very interesting and may have got lost last night” Currently exploring options for resale” I think we all know what this is about and Brazil is on still sorry doubters. We have close links through some of our staff to these people too. Seems like action is needed ASAP.
The Issuer has on-lent the proceeds of the Bonds to OSX 3 Leasing BV ("OSX3") in order to provide it with additional liquidity to meet its ongoing costs and expenses associated with the ownership and maintenance of the floating production, storage and offloading vessel owned by it (the "Vessel").
While OSX3 has been able to build up cash reserves from the on-going charter payments it receives from Dommo Energia SA for the charter of the Vessel, it is not currently in a position to repay the on-loan to the Issuer, as it is currently exploring potential options for the sale or re-charter of the Vessel which may require certain expenditure in the short term.
In light of the above, the Issuer proposes to extend the maturity date of the Bonds for 12 months, to 27 October 2019. The Bonds will continue to accrue interest at thirty- five per cent. (35%) per annum until they are repaid in full.
3. DESCRIPTION OF PRIVATE BOND ARRANGEMENTS
Reference is made to the notice of written resolution published by the Bond Trustee on 18 May 2018 in relation to the 13% Senior Secured Callable Bonds issued by OSX 3 Leasing BV (“OSX3 Private Bond Resolution”). As noted above, the proceeds of the Bonds were on-lent to OSX3 to funds OSX3's on-going liquidity requirements. The Bonds benefit from an intercreditor agreement which provides for repayment of the Bonds in priority to the bonds issued by OSX3 out of the proceeds of any realisation of OSX3's assets. The Issuer is reliant on OSX3 realising value from its assets in order to repay the Bonds.