Billionaire Eike Batista’s EBX Group Co. said it restructured debt after bonds and stocks of his interlinked group of commodities companies fell to a record.
The Brazilian holding company for most of Batista’s assets now holds only long-dated maturities after concluding the restructuring, the billionaire said in an e-mailed statement today, without giving details. The restructuring “is clear evidence of EBX’s high level of commitment toward its obligations with stakeholders,” he said.
Batista is selling assets, reducing staff and trimming the scope of projects as his startups including oil producer OGX Petroleo & Gas Participacoes SA accumulate losses. OGX dropped to a record low yesterday after the billionaire disclosed he sold shares of its flagship oil unit for the first time.
The sale represents a “minimum adjustment” to EBX portfolio related to extension of debt profile and reduction of costs, the billionaire said in today’s statement, adding that he doesn’t expect to sell more shares on the market. EBX will continue pursuing “strategic partnerships,” he said.
Last month, Batista raised 1.4 billion reais by selling a stake in power-generation venture MPX Energia SA (MPXE3) to Germany’s EON SE. Separately, OGX sold an $850 million stake in an oil field to Malaysia’s Petroliam Nasional Bhd.
OGX’s bonds due in 2018 slumped 8.5 cents to 40 cents on the dollar, the lowest on record, today after an O Estado de S. Paulo columnist speculated that Batista may consider restructuring debt. Shares of the company gained 1 percent to 1.05 reais in Sao Paulo, rebounding from yesterday’s all-time low. EBX’s press department declined to give details of the amount of debt restructured.
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