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.