OGX Lands $73m Export Prepayment Loan

By MarEx 2014-04-15 21:55:00

Bankrupt Brazilian oil company Óleo and Gás Participações SA, formerly known as OGX, has obtained a $73.2 million loan to finance exports and related costs, the company said on Tuesday in a securities filing.

The company, the flagship of Brazilian tycoon Eike Batista's EBX energy, mining, shipbuilding and port-operation group before its collapse, said the export prepayment agreement will have a discount rate of 18 percent.

The filing did not say whether other OGX creditors had approved the loan agreement. The company said the loan will be contracted by its subsidiary OGX Petróleo e Gás S.A.

OGX, which is still controlled by Batista, made Latin America's largest-ever bankruptcy protection filing on Oct. 30, as Batista's group came apart due to missed production targets and project and regulatory delays that put off revenue needed to pay for mounting debt and capital investments.

Copyright Reuters 2014.