Latin America
Related: About this forumBankruptcy Filing Is a Stunning Fall for a Brazilian Tycoon
Source: New York Times
BY DAN HORCH
Updated, 8:35 p.m. | The flagship company of the Brazilian entrepreneur Eike Batista, who once boasted that he was on his way to becoming the richest man in the world, filed for bankruptcy on Wednesday.
The filing by the petroleum company OGX was a stunning fall for Mr. Batista, who was once a symbol of Brazils rapid rise as a global economic power but more recently has come to represent a Brazilian elite that views itself as above the rules that govern the most of the country.
The bankruptcy filing was the culmination of a decline that had been apparent for months. It became nearly certain after OGX missed a $45 million bond payment on Oct. 1. According to papers filed with the Court of Justice of Rio de Janeiro, the companys total debt is 11.2 billion reais ($5.1 billion), making this filing the largest corporate default in the history of Latin America.
The company owes $3.6 billion to bondholders, most of them foreigners, with the rest of the debt to suppliers and banks.
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Read more: http://dealbook.nytimes.com/2013/10/30/brazilian-energy-company-ogx-files-for-bankruptcy-protection/
Lint Head
(15,064 posts)PoliticAverse
(26,366 posts)RC
(25,592 posts)Judi Lynn
(160,598 posts)ALL about this clown.
Really burns me that a couple of right-wing pigs attacked ocpagu in G.D., hacked away at her, nearly gang-buggered her until she naturally became, as anyone would who gets taken by these P.O.S.'s, and seemed to snap slightly, ever so slightly at them, and they raced to alert on her like giggling trolls and got her removed.
She taught us so damned much in the painfully far too short time she was here. She gave so very very much more than she could ever have received in a hundred years.
They showed their dirty colors, as they always do, she remained a decent person, and she's the one who's gone.
It would make a maggot gag seeing the way that turned out. They probably ate several extra bags of Cheetos to celebrate their victory over an intelligent human being, worth so much more than billions of blobs like them.
I really wish we were going to learn more about this dirtball, but caught without our friend we are going to learn zip about it.
Socialistlemur
(770 posts)Where is S?D?
Regarding OGX, here's the technical details
Jul. 2013 - A recent study conducted by OGX on the three producing wells at its Tubarao Azul field revealed that there is no way to economically increase the life of the field using current technology and that the existing wells could cease to produce by 2014. Unexpected behavior in the producing wells caused OGX to undertake the study which included reprocessing and reinterpretation of the existing geological and geophysical data. As a result, a new reservoir model was developed that revealed intense compartmentalization and discontinuity of the reservoirs. OGX plans to submit a motion to Brazil's ANP to suspend development of the remaining Tubarao fields with the exception of Tubarao Martelo which will proceed with development as planned. First production for Tubarao Martelo remains on track for 4Q 2013.
The gist of it: they spent a lot of money investing in an oil field which they seem unable to produce. They have a lot of loans, so the fortune seems to have been based on cash flow from an oil field which fizzled. It's the nature of the business.
Judi Lynn
(160,598 posts)Eike Batista to sell Colombia coal mines for $450m
The Brazilian has agreed to sell his coal projects in Colombia to Turkeys Yildirim Holding AS for about $450 million.
Author: Juan Pablo Spinetto (Bloomberg)
Posted: Wednesday , 30 Oct 2013
(Bloomberg) -
Eike Batista, facing bankruptcy protection proceedings at an oil venture, agreed to sell his coal projects in Colombia to Turkeys Yildirim Holding AS for about $450 million in the latest divestment of the former billionaire.
Under a preliminary agreement, CCX Carvao da Colombia SA, Batistas coal unit, will sell its Canaverales and Papayal open- pit mines to Yildirim for about $50 million, the company said in a regulatory filing late yesterday. It also agreed to negotiate the sale of its San Juan undeground mine and logistics project for about $400 million, CCX said. The deal is worth more than four times CCXs market value, which stood at 233.1 million reais ($106.7 million) as of yesterdays close.
Batista, who ceased being a billionaire in July, this year sold stakes in energy, logistics and mining ventures as he seeks to raise cash to pay back debt amid a collapse in the price of his assets. OGX Petroleo & Gas Participacoes SA, the tycoons oil company, could file for bankruptcy protection as soon as today, said a person with direct knowledge of the plans.
CCX expects to close the sale of Canaverales and Papayal by the end of the year after a Sept. 13 agreement to sell the mines to Transwell Enterprises Inc. expired, the company said in yesterdays filing. The sale of the San Juan project is expected to be concluded by the end of April, the company said. Yildirim will make a $5 million payment to negotiate the purchase of the Colombian mines in exclusivity, it said.
While Canaverales holds 27.3 million metric tons of coal reserves and Papayals reserves amount to 15.6 million tons, the flagship San Juan underground mine has 671.8 million tons in reserves and an associated logistics project, CCX said.
More:
http://www.mineweb.com/mineweb/content/en//mineweb-fast-news?oid=210708&sn=Detail