By Michael Place - Wednesday, June 4, 2014
Brazilian oil startup OGpar's shareholders have approved a debt restructuring plan that paves the way for the stricken firm's financial recovery.
The deal will reportedly hand a controlling 42% stake in the company to a group of creditors led by Pacific Investment Management Co. and Credit Suisse Group AG.
Troubled mining and energy magnate Eike Batista will see his share in the company, formerly known as OGX, reduced to 5% from the current 50%.
In a securities filing, OGpar said the plan would allow a US$90mn cash injection via convertible debentures. An initial US$125mn tranche was paid by bondholders in March.
"This approval corroborates [the company's] emergence from judicial restructuring with no financial debt and reinvigorated capacity to conduct its activities," OGpar said in the filing. It added that it is awaiting approval from a bankruptcy court.
The Rio de Janeiro-based firm filed for bankruptcy protection in October with debts exceeding US$5bn.
Batista's net worth has reportedly fallen to less than US$3bn from US$43.5bn in 2011.
Analysts blame the 57 year old's demise on the failure of his once-influential EBX group to meet unrealistic production targets.
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