OGX Hits Snag, OSX to Miss Coupon

A Brazilian court has ruled that the bankruptcy protection applied for by OGX can’t extend to its OGX International GmbH and OGX Austria GmbH units, OGX says. The court claims it does not have the appropriate jurisdiction over the overseas units, through which its $3.6bn in international bonds were issued. OGX plans to appeal the decision. Separately, OSX Brasil does not intend to make an interest payment due next month on its 9.25% 2015 bonds issued by its OSX-3 Leasing unit, according to Norwegian regulatory documents. OSX filed for bankruptcy protection this month, but did not include the OSX-3 Leasing unit. The payment is due December 20. There is $500m outstanding of the notes, backed by the OSX-3 floating production, storage and offloading vessel to be used by OGX. The bonds traded in the low 80s Thursday, according to a trader.