OGP Tumbles Most in Three Months as Restructuring Plan Delayed
Oleo & Gas Participacoes SA, the oil producer founded by former billionaire Eike Batista, fell the most in three months after the company’s lawyer said it will postpone filing a debt restructuring plan that was due today.
Shares of the company, formerly named OGX Petroleo & Gas Participacoes SA, fell as much as 14 percent to 30 centavos in Sao Paulo, the biggest one-day decline since Oct. 31. They traded at 32 centavos at 1:18 p.m. local time.
The restructuring agreement calls for a group of creditors holding most of the $3.77 billion in bonds outstanding to inject at least $200 million into the company and swap their debt for equity. OGP needs more time to finish the plan before delivering it to a Rio de Janeiro court, said Sergio Bermudes, a lawyer representing the company.
“It wasn’t ready,” Bermudes said by phone from Rio. “It’s a very complex plan, a new date will be set. Judicial deadlines are manageable.”
The deal, which must be approved a Brazilian court, would push Batista out of the company’s control, giving creditors that inject new cash a 65 percent share while the outstanding bonds would be converted into a 16.3 percent stake.
Bermudes declined to provide an expected date. OGP’s press office declined to comment on the restructuring plan.
To contact the editor responsible for this story: Brendan Walsh at email@example.com