OGX Petroleo continues plunge on default, bankruptcy speculation

|By:, SA News Editor

Shares of OGX Petroleo (OGXPY.PK -18.6%) fall further as investors fear the end is near. OGX's $2.56B in debt due 2018 has tumbled to 15 cents on the dollar - Bloomberg reports that the company is set to miss a $45M interest payment due tomorrow, citing 2 sources.

Sao Paulo magazine Veja reported over the weekend that OGX will file for bankruptcy protection in 2 weeks time as the oil producer's burn rate puts it on the brink of running out of cash to continue operations.

In a last ditch effort, OGX hopes to receive $250M in new capital from investors in a plan to restructure $3.6B in debt so that it can extend operations long enough to start pumping oil at Tubarao Martelo.

Shares have collapsed 99% since the beginning of 2012.