OGX Petroleo (Ogxpy) Files For Bankruptcy As Eike Eike Batista's Empire Circles The Drain

on October 25 2013 1:54 PM

Embattled Brazilian tycoon Eike Batista's main company OGX Petroleo E (OTCMKTS:OGXPY) has reportedly filed for bankruptcy after the high-flying entrepeneur couldn't salvage a deal to merge the firm or raise outside capital.

The Wall Street Journal reported Friday that Batista, 56, once one of the world's wealthiest men, was unable to find further financial backing or partners. Batista reported lost about $33 billion in the last year.

Batista is the controlling shareholder and chairman of Rio-based conglomerate EBX Group, which owns six energy companies, including OGX. He raised questions about his commitment to the company in May when he trimmed his stake.

In June, ratings firm Finch downgraded the company's debt almost to junk status, citing its $1 billion in obligations.

 

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