Billionaire to Bankrupt: Batista’s Fall From Grace

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Oct. 30 (Bloomberg) –- Bloomberg’s Robert LaFranco reports on Eike Batista’s OGX filing for bankruptcy protection. He speaks with Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Lafranco.

You cannot make this up.

18 months ago he was worth?

$34 billion.

The leverage might wipe that out.

He borrowed a lot of money and personally guaranteed a lot of those funds.

When all things started to go bad, the calls came in on the debt and that was the end.

This was a man who thought he was one day going to be worth more.

He said he was on his way to $100 billion and now?

He was going to be the richest man in latin america.

He had been the poster child for brazilian success and now is the poster child something completely ridiculous.

Leverage was one of the problems.

What are the other parts of the story?

He overpromised.

At its peak, since we started tracking, it was worth about $19 million in the market is him a lot of credit because he has built fortunes before and he might come back.

We have seen falls worse than this.

But they were part of the tech boom when everyone lost.

This stands out singularly.

Leverage but commodities.

They had a huge boom in 2008. he wrote that -- he rode that wave.

We cannot diminish the overpromising.

He said the assets were worth $1 trillion.

It costs a lot of money to extract the value from these assets of the cap are way more money, collateralize and gives personal finances against it.

Robert lafranco, and for

This text has been automatically generated. It may not be 100% accurate.

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