OGX Upheaval Portends Deeper Bond Loss for Pimco: Brazil Credit

In the past 10 days, Eike Batista fired his chief financial officer and hired his fifth restructuring adviser as the ex-billionaire tries to save OGX Petroleo & Gas Participacoes SA.

That’s left bondholders with even deeper losses as the company careens toward Latin America’s biggest corporate default. The oil producer’s $2.56 billion of debt due 2018 has tumbled 5.3 cents to 15 cents on the dollar since Sept. 20, when it announced the departure of Roberto Monteiro, who had led negotiations with creditors. Four days later, the Rio de Janeiro-based company hired Lazard Ltd. to work alongside advisers including Blackstone Group LP in the talks.