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Idle seized vessel giving bondholders a windfall

Goliath's value much more than the US$160m of defaulted bonds

Published Wed, Jul 2, 2014 · 10:00 PM
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[MEXICO CITY] Drifting eight kilometres off the Aruba coast, the 591-foot-long (180 m) oil-servicing ship OSA Goliath has no projects to work on or contracts to fulfil. Yet in its idle state, the ship is generating a windfall for holders of a Mexican corporate bond that went bad.

The Goliath, once the property of Oceanografia SA, has been under the control of the bond trustee since it was seized four months ago following a default that was accompanied by accusations from Citigroup Inc that the…

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