Batista’s OGpar Delivers Recovery Plan to Rio Court, Lawyer SaysJuan Pablo Spinetto
Oleo & Gas Participacoes SA, Eike Batista’s oil company, presented a plan to emerge from bankruptcy protection as it seeks funds to continue operating.
OGpar, formerly known as OGX, submitted the road map to a Rio de Janeiro state court today, lawyer Sergio Bermudes said by telephone. He declined to comment on the contents.
The filing, the deadline for which was Feb. 17, comes a week after creditors including Pacific Investment Management Co. agreed to inject fresh capital in return for a controlling stake.
OGX, which hasn’t posted a profit since the second quarter of 2010, surged in value in 2009 and 2010 after reporting discoveries at more than 80 percent of wells drilled, allowing Batista to tap debt markets to finance operations. Shares then crashed 68 percent in 2012 and 95 percent last year after the company missed production targets and abandoned fields it previously declared commercially viable.
The company filed for protection from creditors in late October, triggering Latin America’s largest corporate default.