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UPDATE 1-As woes mount at Batista's OSX, four board members resign
July 11, 2013 / 3:16 PM / in 4 years

UPDATE 1-As woes mount at Batista's OSX, four board members resign

* OSX to call shareholder meeting to name new board

* Board departures include Batista’s father

SAO PAULO, July 11 (Reuters) - Four of the six board members of Brazilian shipbuilder OSX Brasil SA quit on Thursday, the latest in a wave of high-profile executive departures from billionaire Eike Batista’s crumbling conglomerate of mining, energy and logistics companies.

Financial troubles at oil producer OGX Petróleo e Gas Participações SA, OSX’s sister company and main customer, have put OSX in a difficult position.

In a securities filing, OSX said Batista’s father, Eliezer Batista da Silva, as well as former Energy Minister Rodolpho Tourinho Neto, Luiz do Amaral de França Pereira and Samir Zraick resigned from the board. The company gave no reason for the departures.

Amaral Pereira and Zraick quit as board members of OGX earlier this week. Three other OGX board members, including former Finance Minister Pedro Malan and Ellen Gracie, a former president of Brazil’s Federal Supreme Court, left OGX last month.

OSX said a shareholder Meeting will be called to name new board members. The company’s two remaining directors are Eike Batista and Aziz Ben Ammar, one of the 56-year-old billionaire’s closest advisers.

The resignations come as speculation mounts that Batista will have to restructure OGX’s debt and significantly downsize its operations, leaving OSX in the lurch. Last week, OGX agreed to pay $449 million in compensation to OSX for the cancellation of several orders following efforts to streamline capital spending and avert a debt default.

OSX shares jumped 4.5 percent to 1.16 reais on Thursday. Shares of some Batista-controlled companies have rallied this week on speculation that banks and the government may endorse a potential debt restructuring plan.

Shares of OSX are down 89 percent this year. OGX has slumped 88 percent since the start of 2013 after it missed production targets and said it would abandon new projects it had previously declared commercial.

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