Creditors of Brazil's Oleo e Gas agree to $200 million deal: Bloomberg

Fri Feb 7, 2014 7:37pm EST

(Reuters) - Brazil's Óleo e Gás Participações SA creditors, led by bond firm Pimco, have agreed to about $200 million in financing for the oil company, which began Latin America's largest corporate debt default in October, Bloomberg reported on Friday.

The deal would take control of the company, formerly OGX (OGXP3.SA), out of the hands of Eike Batista, the former Brazilian billionaire whose swift rise to vast wealth was matched by his fall from those same ranks.

Citing people with knowledge of the talks, Bloomberg reported that Deutsche Bank AG will act as an intermediary.

Representatives from Pimco did not immediately return a phone message. Deutsche Bank declined to comment, and Óleo e Gás did not immediately respond to emails.

The Brazilian company was expected to submit a debt restructuring plan this month after having delayed the plan in January.

Óleo e Gás owes about $5.1 billion to investors such as bond fund Pimco, suppliers including Schlumberger NV (SLB.N), and sister company and shipbuilder OSX Brasil SA (OSXB3.SA).

Batista, who controls OSX which is also in bankruptcy proceedings, saw his commodities and industrial conglomerate collapse last year under huge debts after disappointing output at its oil wells sent investors fleeing.

(Reporting by Luciana Lopez in New York and Bruno Marfinati in Sao Paulo. Editing by Andre Grenon)

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