real-time news and commentary for investors
Tuesday, Oct 1
OGX Petroleo will miss interest payment
- OGX Petroleo (OGXPY.PK -8.8%) will miss a $45M payment on dollar bonds today, Bloomberg reports. In a regulatory filing the company stated that it "is in a process of revising its capital structure and, at the same time, its business plan ... In light of this fact, the company decided not to pay" the interest coupon.
- OGX has a 30-day grace period before it is in default, and will attempt to renegotiate the debt during that time. A bankruptcy filing would be a negative for bondholders, according to Oppenheimer analyst Omar Zeolla, because the process would take longer than a restructuring and the government could strip the company of exploration and production licenses, leaving it with no assets.
- A default of the $3.6B in international bonds the company has would be the region's largest corporate default in history, according to Moody's.