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Bankruptcy Concerns Grow Over Brazil Billionaire’s Oil Company | MarketNEWS365

Bankruptcy Concerns Grow Over Brazil Billionaire’s Oil Company

Eike Batista is in a trouble.  Whether or not Eike Batista is out for the count is another story.  His OGX(oil company), which was once the promise of a private oil sector in Brazil after government run Petrobras found so much oil it had to distribute it with others.

Now venture capitalists are concerned whether Batista can pay a 45 million USD short term debt oli company has coming due in October.  OGX owes more than just 45 million USD.  Over the next 10 years, Batista is worked oil company owes 3.6 billion USD. Moody’s last week gave Batista’s bond-holders another hit to the arm when it lowered Batista’s OGX bond-rating — already totally junk — to so poor quality it might as well be dirt.   Oil company went from Ca to Caa2 with not positive outlook.

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BNDES(Brazil’s National Development Bank), lost a whopping R462 million USD (about 220 million USD) on Batista, which accounts for nearly 50% of what BNDES loaned the company, according to São Paulo daily Estado de São Paulo.

BNDES has loaned billions of reals in companies of Batista, from oil company to his troubled MMX(mining firm).  Now Brazilian politicians are looking forward if it was wise to lend this much $ to one man who is not as good at throwing and catching different undertaking as people judged him to be.

Batista is one of the lot of money having man in Brazil. But his on-going issues with his fleet of companies is a clear danger to Batista’s billionaire status.

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