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Thursday, November 21, 2013

Judge Partially Accepts OGX Bankruptcy Filing

Per www.globalinsolvency.com:

Fri., November 22, 2013
 
A Brazilian judge accepted a request for bankruptcy protection by former billionaire Eike Batista's oil company, OGX Petróleo e Gas Participações SA, but denied the same protection for its foreign subsidiaries, a company lawyer told Reuters on Thursday. OGX sought court protection from creditors on Oct. 30 after it failed to convince them to refinance more than $5.1 billion in obligations, in Latin America's largest-ever corporate bankruptcy filing. Marcio Costa, the OGX lawyer, said the judge's decision would complicate the recovery process, adding that the company plans to appeal the ruling. The acceptance of the filing in principle gives OGX 60 days to come up with a restructuring plan. OGX creditors including California-based bond fund Pacific Investment Management Co (PIMCO) and U.S.-based investment fund BlackRock Inc will then have 30 days to endorse or reject the plan.

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