Ex-MPX Accepts OGX Debt in Exchange for Asset

Eneva, the Brazilian generator known as MPX until control was sold to E.ON, has agreed to go on the hook for BRL200m ($92m) in OGX debt, in exchange for control of an OGX gas company. If OGX defaults, Eneva will pay the amount to Itau, Morgan Stanley and Santander, Envea says. In exchange, it will get a 67% stake in natural gas producer OGX Maranhao. OGX missed a $45m coupon on its dollar bonds October 1 and will officially become LatAm’s largest ever corporate default at the end of a grace period Thursday. The Eike Batista oil company has been negotiating with banks, bondholders and potential outside equity investors for the past several weeks. No concrete agreements have yet been reached to restructure the debt or inject new equity into OGX, and a bankruptcy filing is expected as soon as this week. Elsewhere in the EBX group, miner CCX has named Gelson Batista as CEO and investor relations officer. He had been CCX’s mining officer since September, and has been with the Colombian coal miner since last year. Jose Costa left the role of CCX CEO at the end of September, after being named to the post in October 2012. At LLX, the logistics business in which Batista sold control this year to private equity firm EIG, Marcus Berto resigned as CEO. CFO Eugenio Figueiredo is to assume his duties until a replacement is named.