Batista’s LLX Surges on Debt-Extension Negotiations: Rio Mover
LLX Logistica SA (LLXL3), the port operator former billionaire Eike Batista is ceding control of, rallied after saying it’s in negotiations to extend debt payments as it completes investments in Rio de Janeiro state.
LLX, as the Rio-based company is known, climbed 7.5 percent to 1.72 reais at the close of trading in Sao Paulo, the highest since June 4. The stock is down 28 percent for the year, almost double the 15 percent drop in Brazil’s main stock index, amid a production collapse at Batista’s oil company OGX Participacoes & Petroleo SA.
State development bank BNDES and Banco Bradesco SA are in “advanced talks” with the company to renegotiate debt coming due in September and February, respectively, LLX said in an e-mailed statement today. The renegotiation is for a 518 million-reais ($216 million) loan with BNDES and a 345 million-reais loan with Bradesco, LLX said.
LLX has gained 14 percent since it announced after markets closed on Aug. 14 that EIG Global Equity Partners LLC would would buy as much as 1.3 billion reais in shares. EIG will take control of the company from Batista following the share sale, reassuring investors that the Acu port project will have financing for its completion, LLX said Aug. 14.