Billionaire Paolo Rocca’s engineering and construction company Techint Group is suing OSX Brasil SA (OSXB3), a shipbuilder controlled by former billionaire Eike Batista, for payments related to two production units.
A Brazilian unit of the Italian company filed a complaint in a Rio de Janeiro court, according to information published on the court’s website. Amanda Lopez, a Techint spokeswoman who works for Approach Comunicacao Integrada, confirmed the filing and declined to comment on details of the case.
OSX, which Batista created to supply his oil company OGX Petroleo (OGXP3) & Gas Participacoes SA with equipment and services, ordered two wellhead platforms from Techint in 2011 for the Tubarao Azul field where OGX was preparing to produce its first oil. Output at the field faded and has been shut since July. OSX said Oct. 30 it was removing a production vessel from the field.
OSX is planning to file for bankruptcy protection by early next week after its main client, OGX, canceled orders, two people with direct knowledge of the matter said. OGX sought bankruptcy protection on Oct. 30, ending a 16-month decline that wiped $30 billion from Batista’s personal fortune.
OSX’s press office in Rio didn’t reply to an e-mail seeking comment. A court official, who declined to be be named because of court policy, said Techint filed the case yesterday.
OSX was created to profit from Brazil’s local content rules, which limit the use of imported equipment and services by the oil and natural gas industry. The company’s shares have plunged since the March 2010 initial public offering, closing today at 52 centavos in Sao Paulo.
The case number is 0384626-17.2013.8.19.0001, 28th Civil Chamber, Rio de Janeiro State Court (Rio de Janeiro).
To contact the editor responsible for this story: James Attwood at email@example.com