OSX Brasil Files for Bankruptcy

OSX Brasil S.A. (OSX), has filed yesterday judicial recovery request, together with its subsidiaries OSX Construção Naval S.A. and OSX Serviços Operacionais Ltda. The filing has been made at the Courts of the City of Rio de Janeiro after resolution taken by its Board of Directors on a meeting held on November 08, 2013, in order to preserve the value of the company, and to protect the interests of its shareholders, employees and lenders.

In addition, OSX announces that it has terminated all agreements entered into with its client OGX Petróleo e Gás S.A. (OGX), related to the charter and operation of the FPSO OSX-2 unit and the leasing of the WHP-2 platform, due to, among other reasons, the judicial recovery request filed by OGX and its controlling shareholder, OGX Petróleo e Gás Participações S.A., and the lack of confirmation by OGX in regard to the continuation of the WHP-2 platform project development.

As a result of the termination of such agreements, OSX shall pursue all of its legal rights in order to receive indemnification payments provided for in the corresponding agreements and in the applicable law.

OSX reaffirms that other commercial agreements executed by OSX and the client OGX and its subsidiaries, establishing the use, by the client OGX, of production platforms owned by OSX are still in force, and OSX is in contact with such client in order to guarantee the accomplishment or optimization of such agreements, in accordance with the company’s best interests.

[mappress]

Press Release, November 12, 2013