Eike's Equity Has Fallen More Than 90% Since Last Year, Survey Says

07/05/2013 - 08h29

The businessman Eike Batista saw his equity fall more than 90% after the financial storm caused by the investors crisis of credibility regarding the companies in his EBX group.

The announcement of numbers for oil production by OGX below those expected sparked a selloff of shares that ended up spreading to other group companies.

This week, two risk rating agencies downgraded the credit rating of the oil company to a level close to that of firms in default and worsened the situation of the group.

According to a Bloomberg survey, the equity of the businessman is now estimated at US$ 2.9 billion. Last year, when his was counted among the largest fortunes in the world, Eike had worth equivalent to US$ 34.5 billion.

The agency has discounted the personal guarantees of R$2.3 billion (US$ 1.02 billion) offered by the businessman to BNDES (the Brazilian national development bank) for loans made by the institution. The information was obtained by Bloomberg through the Access to Information Act.

BNDES said on Wednesday that the transactions entered into by the EBX Group amount to R$10.4 billion (US$ 4.6 billion).

Translated by DAVE WOLIN

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