OGX sells stake in unit hours before seeking bankruptcy protection

October 31
3:46 AM 2013

OGX Petroleo & Gas Participacoes sold its stake in OGX Maranhao Petroleo e Gas just hours before the Brazilian oil company filed for bankruptcy. Bloomberg News obtained a copy of the filing. However, the price of the deal or the buyer of the stake was not disclosed in the filing. The report said OGX Maranhao was the only producing asset of the oil company controlled by billionaire investor Eike Batista.

In a telephone interview, Oppenheimer & Co Corporate Credit Analyst Omar Zeolla told Bloomberg that the sale would reduce the money bondholders and creditors would be able to get from the company should OGX's assets get liquidated. The filing revealed that OGX had incurred debts amounting to USD 5.1 billion.

On October 28, Brazilian utility firm Eneva and Batista had said the former would take over the natural gas unit in case a default would happen. Eneva said it would pay BRL 200 million for the 66.7% shares it did not yet own. However, no confirmation could be obtained from both firms if this was the deal that was indicated in the filing.

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