Batista Sells $114 Coffee Cups as OGX Awaits Pimco FundsJuan Pablo Spinetto
Oleo & Gas Participacoes SA is selling everything from trash cans to coffee cups as Eike Batista’s Brazilian oil company tries to raise funds and emerge from Latin America’s biggest corporate default.
OGpar, as the Rio de Janeiro-based company is known, today auctioned office furniture including meeting tables, laptops and a toaster oven on SOLD Leiloes Online, according to the Brazilian marketplace’s website. A set of coffee cups with a logo of OGX, the company’s previous name, went for 270 reais ($114), while a refrigerator sold for 540 reais. The sale is pending approval of the Rio court handling the company’s bankruptcy protection process, according to the auction website.
The oil producer, which filed for creditor protection in October, is racing to avoid liquidation after bondholders including Pacific Investment Management Co. agreed last month to inject cash into the company in exchange for a controlling stake. OGpar will get a $125 million first installment from the fresh funding as early as this week, two people with knowledge of the transaction told Bloomberg March 7.
OGpar declined to comment on the auction in an e-mailed response to questions.
Batista, once Brazil’s richest person, has been divesting stakes in his oil, logistics, utility and shipping ventures since May as missed targets, mounting debt and accumulating losses forced him to cancel projects and cut operations. The entrepreneur also sold some of his luxury assets including an Embraer Legacy 600 private jet.
Today’s auction included 666 lots of items, the most expensive of which was a rolling file cabinet that went for 5,820 reais. Some products, including damaged sandwich toasters, didn’t receive bids.
OGpar reduced its workforce to about 160 employees from 350 last year, according to a statement by its press office. The company had relocated to smaller offices in Rio after leaving the 23-story Serrador building that Batista’s EBX Group Co. holding company occupied since 2011.
Shares of OGpar fell 4 percent to close at 24 centavos in Sao Paulo. The stock lost 91 percent in the past 12 months.