OGX Petroleo and Gas Participacoes SA announced it would be asking bondholders for more cash to prevent the firm from seeking bankruptcy protection. This week, the firm founded by Eike Batista met with holders of about USD3.6 billion worth of bonds.
According to Chief Executive Officer Luiz Carneiro, through reporters in Rio de Janeiro, said that the negotiations are going "very well". He added that OGX is expected to emerge healthy and capitalized.
While seeking bankruptcy protection is a possible option, OGX would seek all means to avoid these proceedings that may result in a restructuring plan that would require Batista to give up control over the company. Last month, bondholders had engaged the services of Rothschild to advise on restructuring while on the other hand, OGX was in discussions with Blackstone Group LP.
Carneiro said, in remarks after the recent shareholders meeting at the company's headquarters in Rio de Janeiro, "A financial restructuring, that's the path. In the end, we will have a healthy company, with no debt, capitalize, with enormous potential."
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