Sep. 23, 2013, 10:39 AM
- Eike Batista’s decision to fire the CFO of his embattled OGX Petroleum (OGXPY.PK -6.1%) is expected to heighten tensions with the management team and likely delay the restructuring of $3.6B in debt.
- Roberto Monteiro, removed Friday from his post, was said to be the main negotiator for OGX in the restructuring talks with creditors holding the company's bonds.
- Monteiro’s ouster was opposed by OGX CEO Luiz Eduardo Carneiro, the latest split between Batista and the management team at OGX.
- Update: OGX names Paulo Narcelio Simoes Amaral as its new CFO and investor relations director; Amaral is new to OGX.
Sep. 13, 2013, 4:52 PM
- Eike Batista's flagship OGX Petroleum (OGXPY.PK) has asked creditors for ~$300M in new capital as it faces a debt restructuring and operational struggles, WSJ reports.
- The sides will continue to hash out negotiations, and as they get closer to a compromise some creditors may sign confidentiality agreements enabling them to make a deal, sources say.
- OGX is seeking fresh capital from creditors as part of talks to restructure its $3.6B in outstanding debt, CEO Eduardo Carneiro said yesterday.
Sep. 9, 2013, 3:26 PM
- OGX Petroleo (OGXPY.PK -9.6%) shares slump after Eike Batista challenges OGX's put option exercise, which would force Batista to pump $100M into the cash-starved company immediately and the remainder as needed.
- The beleaguered former billionaire threatened that if the dispute is not resolved in 60 days, he would bring the issue to the arbitration court of Brazil's stock exchange.
- OGX shares skyrocketed 31.4% on Friday on news that the company exercised the put option.
Sep. 6, 2013, 11:27 AM
- Shares of OGX Petroleum (OGXPY.PK +26%) surge after the struggling company demands a $1B cash infusion from controlling shareholder Eike Batista, exercising an option provided earlier by Batista requiring $100M immediately and the remainder to be paid in as needed.
- The move caught the Brazilian market by surprise, as several analysts believed the option wouldn't be exercised since it comes at a very high cost for Batista; he is committed to paying 6.3 reais/share, far above OGX's current market price.
Aug. 29, 2013, 11:19 AM
- Shares of OGX Petroleo (OGXPY.PK -14.2%) are plummeting on reports that OGX's beleaguered controlling shareholder, Eike Batista, will swap $3.6B in bonds for equity and give up his controlling position in the company.
- OGX's $850M deal to sell a stake in its Tubarao Martelo field to Malaysian Petronas has started to crack. As the field fails to live up to expectations, Petronas is attempting to back out of the deal, a move OGX insists it "no right" to before OGX completes its restructuring.
- Although the debt conversion would dilute shareholders, it may be the only option to ease OGX's cash crunch. Analysts speculate the company may run out of cash before year end because of interest payments and drilling costs.
- Shares are down 32.3% this week.
Aug. 27, 2013, 10:56 AM
- OGX Petroleum (OGXPY.PK), the flagship of Eike Batista's troubled industrial empire, says it would return nine oil and natural gas exploration blocks it won at an Brazilian auction earlier this year.
- OGX will pay a fine of 3.42M Brazilian reais ($1.42M) for returning the blocks.
- OGX is banking on the start of oil output at the Tubarao Martelo field to boost revenues.
Aug. 26, 2013, 4:50 PM
- OSX Brasil, part of Eike Batista's troubled industrial empire, says its second floating oil production platform arrived on time in Brazil, and will be leased to oil company OGX (OGXPY.PK) and installed at the Tubarao Martelo field.
- The start of production at Tubarao Martelo should help ease some of the restructuring pressures at Batista's group of companies; the platform will generate revenue of ~$383K/day when it starts output.
Aug. 14, 2013, 3:54 PM
- OGX Petroleum (OGXPY.PK) reportedly has hired restructuring bankers at Blackstone (BX) to provide financial advice, another step that might take the deeply indebted Brazilian company closer to a debt restructuring.
- OGX creditors also are seeking specialized advice, as a group of 5-10 is in talks to hire an investment bank to advise them - Rothschild is said to be among the candidates - and a decision is expected to be made in a matter of days.
Jul. 30, 2013, 10:57 AM
- Brazil's antitrust agency says it will decide in 30 days if Petrobras (PBR -2.3%) and OGX (OGXPY.PK) violated antitrust laws in a deal announced in November; at the time, PBR agreed to sell its 40% stake in the offshore BS-4 oil block to OGX for $270M.
- If the agency decides the deal without approval, the companies may be subject to fines of up to 60M reais ($27M).
Jul. 11, 2013, 11:55 AMEike Batista's empire continues to crumble: Shipbuilder OSX Brasil says four board members are stepping down, a day after OGX Petroleum (OGXPY.PK) said two members of its board are leaving following three other members who left last month, and an OGX shareholder asks a Rio de Janeiro court to block asset sales and payments to Batista-affiliated companies. Company bonds fall to new lows. | Jul. 11, 2013, 11:55 AM
Jul. 10, 2013, 3:59 PMOGX Petroleum (OGXPY.PK) may be allowed to use future output from its offshore Tubarão Martelo field to guarantee new exploration rights bought in May, a source at Brazil's oil regulator tells Reuters. A lack of cash at OGX, which has struggled with lower than expected oil output, has led it to offer non-cash guarantees to ANP that it will perform work on Brazilian oil and gas blocks it won in a May auction. | Jul. 10, 2013, 3:59 PM
Jul. 5, 2013, 8:09 AMBrazilian billionaire Eike Batista's EBX Group energy, mining and shipbuilding conglomerate begins breaking up, as he steps down as chairman of MPX Energia (MPXEY.PK). The restructuring should take months, with reorganizing OGX Petroleum (OGXPY.PK) considered the biggest challenge. Batista reportedly will be left with $1.7B of long-term debt and $1B-$2B of assets; his empire once was valued at $60B-plus. | Jul. 5, 2013, 8:09 AM
Jul. 2, 2013, 3:20 PM
Brazil's Bovespa tumbles another 3.8%, now back to 2009 levels, dragged down by a continued plunge in Elke Batista's OGX Petroleum (OGXPY.PK -24.8%). Not helping is today's report of a 2% decline in industrial production in May, about double the estimates. The good news is a drop in swap rates as traders place bets the central bank could stop hiking rates. The Brazil Index ETF (EWZ -3.6%), the Small Cap ETF (BRF -3.8%).| Jul. 2, 2013, 3:20 PM | 2 Comments
Jul. 1, 2013, 9:43 AM
Eike Batista's troubled OGX Petroleum (OGXPY.PK) says it won't meet production targets since it doesn't have the right technology to continue exploration efforts at three fields; as a result, it cancels contracts with sister company OSX Brasil for construction of five oil platforms, and will pay $449M to OSX because of the cancellations.| Jul. 1, 2013, 9:43 AM | 1 Comment
Jun. 21, 2013, 6:35 PM
Three of OGX Petroleum's (OGXPY.PK) five independent board members, including a former Brazil finance minister, are the latest to flee Eike Batista's sinking ship, as shares have collapsed 96% since their peak in Oct. 2010. The departure raises further questions over a closely watched $1B lifeline the billionaire promised last year.| Jun. 21, 2013, 6:35 PM
Jun. 14, 2013, 11:43 AM
OGX Petroleum’s (OGXPY.PK) bonds are plunging, a sign that investors are bracing for what would be the biggest company default in Latin America as controlling shareholder Eike Batista struggles to raise cash. OGX is set to run out of money in about a year at its burn rate as slumping production puts output goals out of reach, even after Batista pumped in nearly $1B.| Jun. 14, 2013, 11:43 AM | 2 Comments