Batista's OSX thrown lifeline

Nov 05, 2013, 2:35 PM EST
Two banks, Caixa and Santander, agree to refinance a $175 million loan for the struggling shipbuilder, says Reuters.
EBX Group

OSX Brasil SA, the struggling shipbuilder controlled by former Brazilian billionaire Eike Batista, is set to get a much-needed lifeline after sources said two banks agreed to refinance a 400 million real ($175 million) loan 17 days after it had come due. State-run Caixa Econômica Federal and Banco Santander Brasil SA (SANB11.SA), the lender that provided a guarantee to make the loan feasible, agreed on Tuesday to roll over the credit line for an additional 12 months, according to two sources with direct knowledge of the transaction. The original loan had an 18-month maturity. Santander Brasil agreed to put forward 100 percent of the guarantee for the loan, one of the sources said. Both sources declined to be identified in order to comply with local banking secrecy rules. Caixa and Santander Brasil did not have an immediate comment on the loan refinancing. OSX could not confirm the information.