Brazil's OGX board departures quash hopes for fresh capital

7/11/2013

Brazil's OGX board departures quash hopes for fresh capital

BY LUCIANA MAGALHAES

SAO PAULO -- Two remaining independent board members of Brazilian oil and gas company OGX stepped down, quashing hopes for an early move to recapitalize the struggling firm.

OGX's independent board members are tasked with deciding whether to demand that Brazilian tycoon Eike Batista make good on a commitment to invest an additional $1 billion in the company. The resignation of Luiz do Amaral de Franca Pereira and Samir Zraick means there are no longer any independent members on OGX's board.

Last month, former Finance Minister Pedro Malan, former Mining and Energy Minister Rodolpho Tourinho Neto and former Supreme Court Chief Justice Ellen Gracie Northfleet all left the board for undisclosed reasons.

Mr. Batista is Chairman of the board; the three remaining members are his father, Eliezer Batista da Silva, Aziz Ben Ammar and Rodolfo Riechert. All are considered to be linked to Mr. Batista.

The company said it's taking steps to bring in new board members to meet the minimum number of members required.

OGX, the flagship for Mr. Batista's struggling empire, has recently said that four of its five offshore fields aren't economically viable.

Other companies in Mr. Batista's group are looking for buyers as the businessman scrambles to raise cash to pay creditors.

Dow Jones Newswires

Related News ///

FROM THE ARCHIVE ///

Comments ///

comments powered by Disqus