Court expands injunctions in favor of Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V. and Perforadora Oro Negro, S. de R.L. de C.V. under insolvency proceeding (concurso mercantil) and suspends immediately the effects of the resolution purportedly adopted by bondholders for Oro Negro Drilling Pte. Ltd. to issue new liquidity bonds and engage certain advisors

MEXICO CITY, Dec. 29, 2017 /PRNewswire/ -- Integradora de Servicios Petroleros Oro Negro, S.A.P.l. de C.V. ("Integradora"), which is subject to concurso mercantil proceedings in the Second District Court in Civil Matters in Mexico City, Mexico (the "Mexican Court"), announces that the injunctions previously issued in favor of Integradora and Perforadora Oro Negro, S. de R.L. de C.V. have been expanded by the Mexican Court to suspend with immediate effect the proposed issuance by Oro Negro Drilling Pte. Ltd. (the "Issuer"), at the direction of the bond trustee and an ad hoc group of bondholders, of new liquidity bonds in an amount of up to USD 75 million and engagement of certain advisors.

Background

On December 5, 2017, Nordic Trustee AS (the "Bond Trustee"), acting as trustee for the holders (the "Bondholders") of the Issuer's 7.50% Senior Secured Bond Issue 2014/2019 (the "Bond Agreement") issued a Summons for Written Resolution (the "Summons") at the request of an ad hoc group of Bondholders (the "Ad Hoc Group"), to issue new super priority liquidity bonds in an amount of up to USD 75 million and engage and pay for certain advisors. 

On December 6, 2017, Integradora, which is the ultimate holding company of the Issuer and each of Oro Negro Primus, Pte. Ltd., Oro Negro Laurus, Pte. Ltd., Oro Negro Fortius, Pte. Ltd., Oro Negro Decus, Pte. Ltd. and Oro Negro Impetus, Pte. Ltd. (the "Rig Owners"), put the Bond Trustee and the Ad Hoc Group on notice that the Summons represented a clear violation of Mexican law and public policy and requested that the Bond Trustee, the Ad Hoc Group and the purported new board of the Issuer and the Rig Owners cease to take any actions in furtherance of the proposal.  Nonetheless, the Bond Trustee, the Ad Hoc Group and their representatives persisted with the fraudulent measures, and on December 12, 2017, the Bond Trustee announced that the Written Resolution set forth in the Summons (the "Written Resolution") passed and was adopted according to the voting requirements of the Bond Agreement.

Expanded Injunctions

On December 22, 2017, the Mexican Court granted the following expansion of the injunctions (medidas cautelares y providencias precautorias) (the "Injunctions")¹:

OND Pte. Ltd., Bond Trustee, Roger Arnold Hancock, Roger Alan Bartlett, Alejandro Sainz Orantes, Daniel Alejandro Diaz Alvarez, Manuel Ruiz de Chavez Gutierrez de Velasco, Ana Gabriela Avendano Fernandez, Luis Antonio Estrella Saavedra, Santiago Alessio Rogles Segui, Daniel Pardo Fuentes, and Jesus Angel Origel Zavala, as attorneys-in-fact of the Issuer and the Rig Owners (collectively, the "Specified Entities") are ordered to:

1. Immediately suspend any and all effects of the Written Resolution that purported to authorize the Issuer to issue liquidity bonds in an amount up to USD 75,000,000 (the "Liquidity Bonds").
2. Refrain from taking any action intended to cause any Specified Entity to execute the issuance of Liquidity Bonds.
3. Refrain from taking any action intended to cause any Specified Entity to incur obligations with respect to the Liquidity Bonds.
4. Refrain from taking any action intended to dispose of, enjoy, or otherwise use, on behalf of the Specified Entities, the proceeds of the Liquidity Bonds.
5. Refrain from taking any action on behalf of the Specified Entities to assume any obligation to pay, reimburse, settle or otherwise incur liability with respect to the professional fees and expenses of the advisers or technical consultants of the Bond Trustee or the Ad Hoc Group.

Pursuant to applicable Mexican law, the Bond Trustee, the instructing Bondholders, OND Pte. Ltd. and the Specified Entities are subject to the jurisdiction of Mexican courts as a consequence of, among others, taking actions in the context and as a consequence of the concurso mercantil proceeding of Integradora and Perforadora Oro Negro, S. de R.L. de C.V.

Integradora reiterates its demand that the Bond Trustee, the Ad Hoc Group and their representatives cease and desist from continuing to violate Mexican law and to comply immediately with the Injunctions issued by the Mexican Court.

SOURCE Oro Negro