Brazil's OSX May Seek Bankruptcy Protection

SAO PAULO (AP) — Analysts say the ship and offshore oil platform builder OSX Brasil S.A. owned by Brazil's one-time richest man Eike Batista may have to file for bankruptcy protection if it cannot renegotiate debt repayment terms with creditors.

On Wednesday, Batista's oil firm OGX Petroleo e Gas Participacoes S.A. filed for bankruptcy protection after it failed to reach an agreement to delay payment to holders of $3.6 billion in bonds.

Cassia Pontes is an oil industry analyst with the Rio-based Lopes Filho consulting firm. She said Thursday that unless OSX successfully negotiates debt repayment extensions on nearly $2.3 billion worth of loans, "it will have to follow OGX's example."

OSX depended on Batista's oil company for "most if not all of its revenue" Ponte said, by building oil tankers and platforms.

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