OSX's Batista undergoes restructuring before bankruptcy proceedings
Eike Batista had been hedging bis bets on a single Brazilian consulting company to oversee court supervised restructuring for his oil and shipping empire. As the former billionaire replaced Alvarez and Marsal with the Angra Partners to oversee OSX Brazil SA's process of recovery in Rio de Janeiro, it also saw the replacement of Marcelo Gomes as CEO as confirmed by the company through a statement last November 8.
OSX was created to provide oil platforms for OGX Petroleo and Gas Participacoes SA, after its main client went into bankrputcy protection and had been sharing advisory services with its sister company. The two cases had represented the first real test of a Brazilian law passed in 2005 covering bankruptcy in Brazil.
In an observation made by John Ashmead, partner at Seward & Kissel LLP, in a phone interview in New York, "Things are complicated because the companies are related by ownership, management and intercompany transactions. It's a great opportunity but has also great challenges."
The board of directors of OSX had confirmed the judicial recovery petition, had also switched advisers and is now seeking to change its name, address as well as board composition In futherance of this, the Rio de Janeiro based company, in a November 8 statement, hired Ricardo Knepfelmacher's Angra Partners who is based out of Sao Paulo last October 15. Because of this hiring, the company's third CEO would be appointed in less than three months. The new CEO is Ivo Dworschak Filho and his appointment alongside other actions would be voted upon by November 28.
OSX submitted itself for bankruptcy protection, as confirmed by Mattos Filho, Velga Filho Marrey Jr and Quiroga Advogados Partner Eduardo Munhoz, aa known adviser to Batista who retained 67% of the company. Representing the company in court is Galdino e Carneiro Advogados.
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