Mexico's Oro Negro Creditors Attempt To Seize Bankrupt's Oil Rigs - Reports

The creditors of Mexico's bankrupted Oro Negro oilfield service company have attempted with the help of police to seize the company's oil rigs located in the Gulf of Mexico, US media reported.

MEXICO CITY (UrduPoint News / Sputnik - 23rd October, 2018) The creditors of Mexico's bankrupted Oro Negro oilfield service company have attempted with the help of police to seize the company's oil rigs located in the Gulf of Mexico, US media reported.

On Friday, a court in Mexico City ruled that the company's oil rigs should be handed over to the bondholders as part of a fraud case against Oro Negro, headed by Gonzalo Gil, the son of Mexico's former Finance Minister Francisco Gil Diaz.

According to The Wall Street Journal, the helicopters, carrying attorneys of the company's creditors and escorted by the police, on Monday attempted to seize five oil rigs in compliance with the court order, however, the workers of the drilling platforms prevented all but one of the aircraft from landing.

In 2013, Oro Negro took a loan of about $1 billion to lease the oil rigs and to provide oil services to the state-owned Pemex company, which was trying to increase oil production at that time. However, following the decrease in oil prices Pemex had to reduce payments to its contractors, and as a result, Oro Negro was not able to pay off its debts and declared bankruptcy in 2017.