SAO PAULO – OGX Petroleo e Gas Participacoes S.A. of Brazilian tycoon Eike Batista says negotiations with holders of $3.6 billion in bonds has ended without an agreement.
The company says on its website Tuesday that months of negotiations with creditors failed to lead to a debt-restructuring agreement. It did not say why.
OGX is now expected to prepare a so-called judicial recovery plan aimed at suspending payment of its debt for 180 days.
Earlier this month, OGX missed a $45 million interest payment on the $3.6 billion worth bonds in the hands of creditors.
OGX says on its website that it needs $250 million “to satisfy near-term liquidity through the first quarter of 2014. Without new funding the company says it expects to run out of cash by late December.