Batista’s EBX Said to Vacate Rio Headquarters for Smaller OfficeJuan Pablo Spinetto
EBX Group Co., the holding company of former Brazilian billionaire Eike Batista, is moving out of its Rio de Janeiro headquarters into smaller offices in the city, said two people with knowledge of the move.
EBX and its units are vacating the Serrador building in downtown Rio, the people said, asking not to be identified because the decision hasn’t been made public.
The relocation is taking place as OGX Petroleo & Gas Participacoes SA, the centerpiece of Batista’s commodities group, yesterday missed a $45 million interest payment on its 8.375 percent notes due in 2022, prompting Standard & Poor’s to assign a default rating to the company and the bonds. The tycoon, who lost his billionaire status in July and is now worth $73.7 million, is selling assets, firing staff and ceding control of some of his commodities and logistics ventures.
The EBX companies are relocating to two buildings in the Flamengo neighborhood of Rio’s southern zone, where there were based before moving to Serrador in 2011, one of the people said, adding that the move is expected to be done by the end of the year. EBX declined to comment in an e-mailed statement.
EBX is four months in arrears on the rent it pays for Serrador, Veja columnist Lauro Jardim wrote in his blog earlier today, without saying how he got the information. The holding company started vacating the building yesterday, he wrote.
The oil producer was set to run out of money by early September based on its burn rate through the end of the second quarter, according to data compiled by Bloomberg.