Eneva SA is in discussion to avoid redemption of OGX debt

By Marc Castro

Oct 24, 2013 11:07 PM EDT

Brazilian utility firm Eneva SA, whose main shareholders are German EON SE and Brazilian mogul Eike Batista, is in discussion with banks and its partners on means to avoid the redemption of USD300 million worth of indebtedness owed by a natural gas company it owns with Batista. These activities were confirmed by three people with knowledge of the matter.

Eneva is seeking to form agreements with the creditors of OGX Maranhao Petroleo & Gas SA, where Eneva holds a 33% interest. The deals seek to forego early payment rights that would become demandable if Batista's OGX Petroleo & Gas Participacoes SA would default. The said terms were reported by sources who sought anonymity as the negotiations were private in nature. It is also in talks with possible buyers of OGX's stake in the venture and may opt to acquire the shares for itself.

Eneva is seeking to remove itself from the web brought about by the collapse of OGX after EON started purchasing shares from Batista in early 2012. The goal of EON is to enter the Brazilian market as its home profits were declining. At that time, EON CEO Johannes Teyssen described Batista as 'one of the most successful businessmen in Brazil' and called MPX as an ideal partner.

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