Legal News

Oil Company Batista Leapfrogs After $5.8 Billion Debt Unanimity
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

A former Brazilian billionaire’s oil company, Eike Batista Oleo & Gas Participacoes SA (OGXP3) jumped after creditors agreed to change $5.8 billion of debt into a 90 percent equity stake.

The company surged to 32 percent in Sao Paulo today and closed 16 percent higher at 22 centavos. The Rio de Janeiro based explorer, materialized from bankruptcy after defaulting in the biggest Latin America’s corporate debt debacle.

  
What
Where


“This was the most viable solution because, given the size of the debt, the company wouldn’t be able to meet its obligations,” Joao Pedron Brugger, who helps oversee 400 million reals ($170 million) at Leme Investimentos Ltda, said in a phone interview from Florianopolis. “At least the company gets out of bankruptcy protection and there will probably be significant changes in control and management.”

Eduardo Munhoz, the companies lawyer in charge of the bankruptcy protection case said, Oleo & Gas are expecting to get a bridge loan of $15 million before the end of this week and $35 million more by early next month. He also said the company will emerge from bankruptcy protection by March. The plan could also include $1.5 billion of debt into equity from canceled orders and $500 million in payments to suppliers.

According to Bloomberg, creditors still need to approve the proposal and the court in charge of the bankruptcy protection plan. If it happens, shareholders will be left a 10 percent stake in the company. Raising billions of dollars in equity markets to fund a program, he then started to tap into the debt market, selling bonds to investors. He valued some oil deposits at $1 trillion that turned out to be duds and OGX lost 98 percent of it’s value and cash.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Last week Oleo & Gas said it wants to produce 32,000 barrels a day at Tubarao Martelo, a region where the company missed output targets, once it’s operating six or seven wells. 14,165 barrels were pumped at two wells in Martelo on December 23.

Image Credit: Business Insider





 

RELEVANT JOBS

Commercial Real Estate Paralegal

USA-FL-Altamonte Springs

Full Job Description Commercial Real Estate Paralegal 5+ Years Experience Miller Johnson Law, an...

Apply now

Litigation Paralegal (Bilingual Preferred)

USA-NV-Las Vegas

Bilingual Litigation Paralegal Company Description:   We are one of Nevada’s premi...

Apply now

Real Estate Paralegal

USA-FL-Hallandale Beach

We are a boutique law firm concentrating on residential and commercial real estate transactions, and...

Apply now

Corporate and Contracts Paralegal

USA-VA-Alexandria

Cancer strikes more than 10 million people worldwide each year. As the leading medical society repre...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Senior Business Immigration Associate Attorney

USA-VA-Arlington

Arlington office of our client seeks a senior business immigration associate attorney with 6-8 years...

Apply Now

Insurance / Litigation Associate Attorney

USA-FL-Miami

Miami office of our client seeks an insurance/litigation associate attorney with 2-3 years of civil ...

Apply Now

Employment Associate Attorney

USA-NY-East Syracuse

East Syracuse office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with 4 ye...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top