RIO DE JANEIRO/SAO PAULO Oct 28 OGX Petróleo e
Gas Participações SA, the Brazilian oil company
controlled by former billionaire Eike Batista, will file for
bankruptcy protection as early as Tuesday, three sources with
direct knowledge of the situation told Reuters on Monday.
OGX declined to comment.
Officials at the Rio de Janeiro-based company are currently
preparing paperwork for the filing, said one of the sources, who
declined to be identified because the decision is private. The
same source said that OGX plans to exclude its OGX Maranhão gas
unit, which is currently in talks to sell a stake to Eneva SA
, from the bankruptcy protection filing.
OGX is saddled with over $5 billion in debt.
If confirmed, it would be the largest-ever corporate
bankruptcy filing in Latin America, according to Thomson Reuters
data. The decision comes as a 30-day grace period that OGX had
to pay $44.5 million in bond interest payments to investors was
about to expire.