OGX secures $215m from creditors

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offshore oil gas_sqOleo & Gas Participacoes (OGP) has reached an agreement with its creditors including Pimco, which will provide capital to the oil and gas company.

Under the terms of the deal, OGP’s subsidiary OGX will issue $215m of debentures, while its founder, Brazilian tycoon Erik Batista, will give up control of the company to the creditors.

The negotiations were delayed when Blackstone’s credit unit BlackRock pulled out, said Bloomberg.

“This agreement is an important vote of confidence in OGX’s potential and an important step in our restructuring,” said OGP CEO Paulo Narcelio, according to the report. “If approved, it will provide the company with a new start,” he added.

In August last year private equity firm EIG Global Energy Partners bought a controlling stake in port logistics business LLX Logistica from Batista for $560m.

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