UPDATE 2-Bankrupt Batista oil company files restructuring plan

sábado 15 de febrero de 2014 00:37 GYT

* Plan was supposed to be filed in January

* Court approval needed to put plan in effect

* Oleo e Gas gives up 7 offshore oil prospects

By Jeb Blount

RIO DE JANEIRO, Feb 15 (Reuters) - Brazilian tycoon Eike Batista and his oil company Oleo e Gas Participações SA presented a plan to a Rio de Janeiro judge on Friday to restructure the bankrupt enterprise and cede control to creditors owed $5.8 billion.

The plan, based on agreements made in December and February with bondholders owed $3.8 billion, will give creditors 90 percent of Oleo e Gas and leave existing shareholders, including Batista, with 10 percent, Oleo e Gas said in a statement. Bondholders and other creditors will also provide the company with up to $215 million in new loans to finance the restructuring.

On Oct. 30, Oleo e Gas, then known as OGX Petróleo e Gás Participações SA, made Latin America's largest-ever bankruptcy-protection filing. The filing marked the nadir of Batista's EBX energy, mining, shipbuilding and port-operation group. OGX, the group's flagship, has lost more than 99 percent of its value since 2010.

The restructuring plan was originally scheduled for delivery to the court in late January, but talks with creditors and advisors forced at least two delays.

Once worth about $60 billion, EBX soared as investors bet Brazil was one of the best-placed commodities markets to benefit from China's economic boom. EBX and its companies, though, missed production targets, and project and regulatory delays put off revenue needed to pay for debt and capital investments. A global slowdown sealed EBX's fate.   Continuación...