| SAO PAULO
SAO PAULO May 26 Brazilian bankrupt oil firm
Óleo e Gás Participações SA unveiled new rules under
its restructuring plan for the remaining portion of a
debtor-in-possession loan and a put option that would require
controlling shareholder Eike Batista to inject $1 billion into
In a document released over the weekend, the Rio de
Janeiro-based company, formerly known as OGX Petróleo e Gás
Participações SA, said creditors would have to approve an
additional $90 million from a so-called DIP,
debtor-in-possesion, loan in two portions.
It also included a clause informing creditors of a potential
sale of Oléo e Gas's Colombia unit and changes to the so-called
"Eike-put" option from the original plan released in February.
Oléo e Gás filed Latin America's largest-ever
bankruptcy-protection petition in Rio de Janiero on Oct. 30
after its first oil wells produced less than expected and
investors lost confidence in the company's ability to keep up
with its debt payments and finance new oil-field development.
Under the new plan, creditors would have to agree to honor a
decision made between Batista and the company over the validity
of the put option and Batista's ability to pay it. The put
option was questioned and investigated by Brazilian prosecutors.
The plan also changes terms of the DIP loan that would
consist of a three-portion bond sale entirely subscribed by the
creditors. The company has already obtained a first portion of
$125 million in fresh financing, with the remaining $90 million
to be released in two portions after the passage of the
Oléo e Gás shares rose 6.25 percent to 0.17 reais in
afternoon trading in Sao Paulo on Monday, on track for their
biggest one-day jump in more than three months.
Almost two years ago, when the company was faced with
growing investor discontent over its performance, Batista
promised to invest $1 billion in the company if shares fell to a
certain level. However, Batista failed to fulfill his promise
when the shares touched that level.
Batista lost almost all of his estimated $30 billion fortune
last year after shares of the listed oil, shipbuilding, mining
and logistics companies of his Grupo EBX plunged. A final
decision on the put option will be based on reports from
independent legal advisors, the document showed. Efforts to find
the name of the advisors were unsuccessful.
The company owes about $5.1 billion to investors such as
bond fund Pacific Investment Management Co, suppliers such as
oil services company Schlumberger NV, and to its sister
company, Batista's shipbuilder OSX Brasil SA. OSX
which gets nearly all its revenue from Oléo e Gás, filed for
bankruptcy on Nov. 10.
Efforts to contact creditors and OSX for comment were
(Reporting by Guillermo Parra-Bernal; Editing by Jeb Blount and