Brazil's OGX Seeking Bankruptcy Protection
OGX is the backbone of a Batista empire that also includes steel, mining, infrastructure and real estate companies. All are struggling as Batista has come up short on his bet that he could deliver riches with offshore oil finds.
Batista was in talks for months with OGX's creditors, but earlier this month the company missed a $45 million interest payment on the bonds and hopes of working out a deal evaporated.
OGX reported on its website that it needs $250 million "to satisfy near-term liquidity through the first quarter of 2014." The company said that if the restructuring plan isn't accepted, and with no new funding, it will run out of cash before year's end.
For Henrique Matias Lorenzo, a 27-year-old graphic designer in Sao Paulo who sipped a coffee while reading about Batista on his iPad, the fall of Brazil's best-known business playboy should serve as a slap of reality for his country."What happened was that Eike had excessive optimism, and that spread to others who came to believe in a project that wasn't based on solid figures and facts," Lorenzo said. "I think it reflects the overall slowdown on Brazil, because the economy is also based on an optimism that isn't strongly supported by reality." ___ Associated Press writer Stan Lehman in Sao Paulo contributed to this report ___ Bradley Brooks on Twitter: www.twitter.com/bradleybrooks
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