Eike Batista’s oil company will get the first payment in a rescue plan as early as next week, said two people with knowledge of the transaction, offering a glimmer of hope it can salvage some value from Latin America’s biggest corporate debt debacle.
Petroleo Brasileiro SA’s perceived creditworthiness is deteriorating on concern the state-run oil company’s production will falter as it scales back drilling to offset losses sparked by Brazil’s fuel subsidies.
Argentine dollar bonds tumbled the most in emerging markets on concern government measures from devaluation to rate increases aren’t enough to improve the country’s deteriorating debt payment capacity.
Pacific Investment Management Co. and BlackRock Inc. are set to take over Eike Batista’s failed oil ambitions as creditors accept losses as deep as 99 percent on $5.8 billion of debt in return for ownership stakes.
OSX Brasil SA, the shipbuilder founded by former billionaire Eike Batista, is surging to a six- month high in the bond market after its sister company and biggest client moved closer to emerging from bankruptcy.