BTG’s Esteves Doesn’t Expect Damage From EBX’s CollapseFrancisco Marcelino
Grupo BTG Pactual Chief Executive Officer Andre Esteves doesn’t expect fallout from the collapse of Eike Batista’s EBX Group Co. to damage his bank.
“We see no negative events related to our relationship with EBX companies” in coming quarters, Esteves, 45, said today on a conference call with analysts after the Sao Paulo-based lender announced second-quarter results.
Batista’s OGX Petroleo & Gas Participacoes SA has missed production targets and the company’s shares have tumbled more than 90 percent in the past year. BTG was one of the lenders singled out in a report last month by Moody’s Investors Service, which warned that the bank could sustain “sizable losses” if EBX, the holding company for most of Batista’s assets, defaults.
Companies run by Batista, 56, owe BTG about 650 million reais ($282 million), a person with direct knowledge of the matter said in July. The bank canceled a credit line of $1 billion that was part of a March agreement with Batista, the person said.
Under the March accord, BTG helped Batista’s commodities companies, including OGX and power generator MPX Energia SA, sell assets.