OGX Faces Looming Record Latin American Default

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Oct. 1 (Bloomberg) -- Bloomberg News’ Juan Pablo Spinetto reports that Eike Batista’s OGX Petroleo & Gas Participacoes will miss a $45 million bond payment, moving the company to the brink of the biggest corporate default in Latin America. He speaks on Bloomberg Television’s “Market Makers.”

Point?

Two years ago, eike batista was on track to being the richest man in the world.

It is a debt problem.

Too much debt, thinking that he would be producing large amounts of oil.

In the reality, he is not producing that amount of oil.

His fields are not producing as much as expected.

He has this massive payment he needs to pat and does not have the money to do it.

Two bonds, one in 2011, 1 in 2012. now, the reality is he does not have the money.

What does that mean for eike batista?

When a company misses a bond payment, it could mean it is having first default.

-- heading towards default.

If it ends up in bankruptcy court, there is not much left for the people who gave him his wealth to begin with.

Ogx has 30 days of a grace.

To pay -- a grace period to pay.

There are not a lot of options.

We spoke to the ogx ceo, he was saying that they will try to convince bondholders to put more money to keep the company afloat.

That does not seem to be going very well considering today's news.

The other option that he was saying, he was admitting that bankruptcy protection was an alternative that the company would consider.

These are a few options.

The other option would be to convince eike to cut more money or to convince petronas to put more money in the company now.

Does eike have more money?

I don't think he has.

Our estimates show us that he has $100 million of a valuation.

He has over $30 billion in wealth last year.

Thank you for keeping us up on eike batista and ogx.

Live from rio de janeiro.

This washington shutdown is not

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

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