Eike Batista’s EBX Group Co. restructured a $2 billion investment by Mubadala Development Co. at a time the combined debt of the Brazilian billionaire’s companies surpasses their market value.
EBX, based in Rio de Janeiro, and Abu Dhabi’s Mubadala also reached agreements to protect the wealth fund’s remaining investments in Batista’s group of interlinked energy, commodities and logistics startups, EBX said in an e-mailed statement. The partners will continue discussions on developing EBX’s companies, EBX said.
“Under the new agreement, EBX has redeemed a significant portion of Mubadala’s initial investment,” the Brazilian holding company said. “EBX and Mubadala have also entered into new agreements ensuring enhanced protection vis-a-vis the remaining portion of the investment from Mubadala.”
Batista’s six publicly traded companies have lost almost $10 billion in combined market value this year. OGX Petroleo & Gas Participacoes SA, Batista’s oil explorer that is a client for his shipbuilding and port companies, has plummeted 88 percent this year after missing production targets and abandoning oil fields it had previously declared commercial.
The six companies’ combined market value is 9.4 billion reais compared with total debt at the end of the first quarter of 24.5 billion reais, according to data compiled by Bloomberg.