Beleaguered Brazilian oil group OGX has filed for bankruptcy protection after failing to reach an agreement over its $5billion debt.
The company, controlled by former billionaire Eike Batista, has made Latin America’s largest ever corporate bankruptcy filing after missing a $44.5million interest payment earlier this month.
Last minute talks earlier this week failed, leading to last night’s application for protection from the courts.
If approved, OGX would have 60 days to present a restructuring plan, with creditors given a further 30 days to support or turn down the survival bid.
“Once we restructure our debt and make our capital structure adequate, OGX will have a prosperous future, able to generate wealth for its shareholders, workers, creditors and for Brazilian society,” the company said in its filing.
Bids for parts of the company have already been made, with E.On and Cambuhy launching a $115million offer for the company’s gas arm.
Batista, once the world’s seventh richest man, saw his personal fortune collapse over the last 18 months, with the 56-year-old losing more than $30billion.
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