WSJ: OGX prepares bankruptcy filing

|By:, SA News Editor

OGX Petroleum (OGXPY), Eike Batista's flagship oil company, is preparing a bankruptcy protection filing in Brazil to reorganize as its cash reserves dwindle, WSJ reports.

The so-called judicial recovery plan for reorganization is said to differ from the traditional Brazilian bankruptcy process that tends to end in liquidation.

Cash-strapped OGX, operating with ~$3.6B of debt, reportedly asked for and failed to receive a $75M capital injection this week from creditors concerned they won't get their money back.