Eike Batista’s Oleo & Gas Participacoes SA (OGXP3) jumped after the former Brazilian billionaire said he reached an agreement with creditors to convert $5.8 billion of debt into 90 percent of equity in the oil company.
Oleo & Gas, formerly known as OGX Petroleo & Gas Participacoes SA, rose 21 percent to 23 centavos at 10:38 a.m. in Sao Paulo. The benchmark Ibovespa climbed 0.3 percent.
The accord, which includes restructuring dollar bonds, may help the Rio de Janeiro-based explorer emerge from bankruptcy two months after defaulting in Latin America’s biggest-ever corporate debt debacle. Batista, once Brazil’s richest man and the eighth-wealthiest on earth with a fortune topping $30 billion, struggled to save an empire that included a shipbuilder and port developer since mid-2012, when OGX began missing targets.
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