Eike Batista pledged US$1 billion of his personal wealth in an offer to personally guarantee loan for his publicly traded companies. The Brazilian Billionaire lost more than a quarter of his personal wealth with this move.
Batista's US$4.1 billion net worth took a nosedive to a mere US$2.9 billion, as per the on the Bloomberg Billionaire Index.
The loans that Batista personally guaranteed are part of the BRZ$10.4 billion that Batista's companies contracted with BNDES (Brazilian Development Bank), a state-run lender.
Eike Batista is the chairman and founder of OGX Petroleo & Gas Participacoes SA. Batista's US$34.5 billion fortune took a plunged after repeatedly failing to meet target that were set for his startup companies.
Batista's flagship company OGX Petroleo & Gas Participacoes SA said that it may shut down its only producing oil field which will prompt a sell off that since erased at least $1 billion in market value from his six publicly traded units
Ray Zucaro of SW Asset Management said, "They can go after his personal assets, the car he bought for his children and so on. The nice thing about a corporation is that if the corporation goes away, the assets they can get are contained within that. This is more problematic for him"
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