Eike Batista loses $34.5 BILLION in ONE year!
It’s finally happened. The spectacular upstart oil firm known as OGX OGX Petroleo is sinking like a platform torpedoed on all four legs. The stock is now a shadow of itself and the Brazilian (former billionaire) owner, Eike Batista, owes the loss of his super-one-percenter status to that one firm. OGX shares have fallen from a high of R$23 in Oct. 2010 to R$0.21 on Tuesday. Batista’s oil baby isn’t worth a dime.
It gets worse. He couldn’t find anyone to bail out OGX. There are currently no white knights willing to take over OGX’s project at its failed oil fields, once deemed Batista’s underwater gold mine.
Batista has become the most picked on super rich man for the past several months. Shareholders are nagging him. He was dumped from Forbes’ billionaire ranks on Sept. 2. And now, there is no rest for the wicked. Batista’s OGX will default on a $45 million debt due today. Newsweekly Veja magazine in Brazil is saying the company will file for bankruptcy protection within two weeks.
His shipping company, OSX, is next to fall, Veja reported today.
The $45 million debt is part of a massive $3.6 billion loan for an oil company that the market loved when it launched in 2008. Then, Batista could do no wrong. He was the next Carlos Slim, one of the two richest men in the world right along with Bill Gates. Batista invested in everything the Brazilian government loved: logistics, shipping, natural resources. He became the most admired entrepreneur in the country, if not the most public one.
In reality, Batista became nothing but a constant juggler, and not a very good one. He became, as the old adage says, a jack of all trades and a master of none.
The default is the biggest in Brazilian corporate history and within South America it is second only to Argentina’s Bank of Galicia and Buenos Aires, which failed to pay a $1.9 billion debt last year.