July 8 (Bloomberg) -- Grupo BTG Pactual has about 80 percent of its loans tied to Brazilian billionaire Eike Batista in MPX Energia SA, which got a cash injection last week from Germany’s EON SE, a person familiar with the matter said.
The loans made to companies linked to Batista by Sao Paulo-based BTG, Brazil’s fifth-largest bank by market value, total about 650 million reais ($288 million), the person said, asking not to be identified because the matter is private.
BTG is one of several Brazilian banks facing the prospect of “sizable” losses if companies controlled by Batista default, Moody’s Investors Service said in a report today. MPX rose the most in five years last week after Germany’s EON SE strengthened its control over the Brazilian thermal-power utility and Batista quit as chairman.
Officials at BTG and MPX declined to comment on the loans.
To contact the reporter on this story: Francisco Marcelino in Sao Paulo at firstname.lastname@example.org