Batista Companies Slump on Debt Restructuring Report: Rio Mover

Bonds and shares of Eike Batista’s companies dropped after an O Estado de S. Paulo columnist speculated the Brazilian billionaire may consider restructuring debt.

EBX Group Co., the holding company for most of Batista’s assets, may be considering restructuring its debt, Sonia Racy wrote on her blog today, citing market speculation she didn’t identify. The report is sending down the price of Batista’s companies today, Claudio Coppola di Todaro, a fund manager at RC Gestao de Recursos Ltda., said.

LLX Logistica SA (LLXL3), Batista’s developer unit, lost 5.5 percent to 1.18 reais at 12:12 p.m. in Sao Paulo today, the worst-performing stock on the Brazilian benchmark Ibovespa index. OGX Petroleo & Gas Participacoes SA, the tycoon’s oil unit, declined 3.9 percent to 1 real, a record intraday low. OGX’s bonds due in 2018 slumped 7.8 cents to 41.5 cents on the dollar, also the lowest on record.

“The share price is telling me that there is something wrong going on,” Coppola di Todaro said by telephone from Sao Paulo today. Batista “entered into a spiral where bad news follows more bad news. Something has to happen soon.”

EBX’s press office in Rio de Janeiro didn’t immediately reply to an e-mail seeking comments on the Estado report.

To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.