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OGX Misses Debt Payment as Record Regional Default Looms

OGX Petroleo & Gas Participacoes SA defaulted on $1 billion of bonds after missing an interest payment, accelerating former billionaire Eike Batista’s slide toward Latin America’s largest-ever corporate debt debacle.

The oil company missed a $45 million payment on dollar notes due 2022, Rio de Janeiro-based OGX said in a regulatory filing today. The decision prompted Standard & Poor’s to assign its default rating to the company and the bonds while Moody’s Investors Service and Fitch Ratings said they’d give OGX the 30-day grace period before calling it a default.