Batista seeks Mubadala refinancing after Óleo success, sources say
By Guillermo Parra-Bernal and Jeb Blount
SAO PAULO/RIO DE JANEIRO, June 18 (Reuters) - The successful restructuring of bankrupt oil producer Óleo e Gás Participações SA will allow Brazilian tycoon Eike Batista to move forward with plans to cut his own debt, three sources with direct knowledge of the situation said.
Batista and his EBX holding company have been in talks to renegotiate about $2 billion owed to Abu Dhabi sovereign wealth fund Mubadala Development Co PJSC, the sources said. Batista may offer assets, including stakes in firms he either controls or has a stake in, to speed up the process, they said.
"Our discussions are continuing," Brian Lott, a spokesman for Mubadala, told Reuters without elaborating. "We continue to review assets and opportunities that complement our existing portfolio."
If the loan is refinanced, it will be the second time both parties agreed to change the terms of the loan. Soon after Mubadala bought a 5.6 percent stake in EBX in March 2012, it converted that equity into debt. EBX was forced to renegotiate the debt last July as Batista's energy, mining and logistics empire collapsed.
Spokespeople and lawyers for Batista and EBX declined to comment.
Now that a judge has approved Óleo e Gás' restructuring and most other EBX companies have been sold, Batista wants better terms on the Mubadala deal, a first source said. Óleo e Gás used to be known as OGX Petróleo e Gás Participações SA, which filed Latin America's largest-ever bankruptcy petition last year.
The Óleo resolution "is a starting point from which he can improve his own finances and those of his business," said the source, who is not authorized to discuss the matter publicly.
A renegotiation could involve Mubadala getting new stock in or extending loans to EBX companies, a second source said. Without new investment some of those companies may not be able to generate revenue needed to repay their debt. Continuación...