Eike will emerge with personal wealth of about $1bn or $2bn – well short of his $30bn peak but still not bad for a few years spent selling dreams.
Batista to repay banks in full, bondholders – forget it: Valor
A report in Valor Econômico on Thursday makes joyous reading for the bankers of struggling tycoon Eike Batista and represents the portents of doom for original holders of his international bonds.
Apparently, Batista and BTG Pactual, the Brazilian investment bank controlled by Andre Esteves, have cooked up a restructuring plan in which the billionaire will reduce his stakes in his more valuable companies to become a minority shareholder.
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Eike will emerge with personal wealth of about $1bn or $2bn – well short of his $30bn peak but still not bad for a few years spent selling dreams.
Bondholders, on the other hand, will lose their shirts. OGX, his oil flagship, owes about $4bn and has assets worth about $2bn in terms of oil blocks, a gas field and some other bits and pieces. Bondholders will be offered the choice of a buyback at a haircut or a combination of a buyback and an exchange of debt for equity (though equity in what, one must ask?).
Read the article online here: Batista to repay banks in full, bondholders – forget it: Valor | beyondbrics
