Some good news for OGX and rumours that Batista may leave
In a rare piece of good news from Eike Batista's crumbling mining empire, shares of the conglomerate's oil division OGX soared by 44% on Wednesday.
The Brazilian oil producer – part of the EBX Group – fired its chief executive on Tuesday as part of a restructuring plan to avoid bankruptcy. Stock prices began their quick ascent that day as rumours swirled that Batista may cede control of the company.
Chief executive Luiz Eduardo Guimaraes Carneiro has been replaced by the company's Chief Financial Officer, Paulo Narcelio Simoes Amaral.
OGX also dismissed its legal officer and hired a consulting firm to perform an audit of its business operations from 2008 to 2013.
But Tuesday's move doesn't erase the company's problems. OGX could still take the title of largest corporate default in Latin America if it does not make a $44.5 million interest payment on its $3.6 billion debt by the end of the month, Reuters reports.
The EBX Group has had a very difficult year. The conglomerate has been selling off several divisions over the past year in an attempt to address financial troubles – including mountains of debt.