Eike Batista Donates Homes Worth and Estimated US$ 22 Million to his Children

05/05/2014 - 08h38

Last year, Eike Batista, who was once the richest man in Brazil, became "homeless."

He donated his principle residences - a mansion in the high-end Rio neighborhood of Jardim Botânico and one along the coast in Angra dos Reis - to his sons Thor and Olin, both from his marriage to model Luma de Oliveira.

In the donation deeds, found by Folha at a Rio notary's office, the values of the properties are declared at US$ 6.7 million and US$ 1.6 million respectively.

But calculations done by a broker indicate the mansions are worth together at least US$ 22 million.

The Rio home was valued at about US$ 13.5 million. The vacation home is worth at least US$ 10 million, considering only its 16,500 square meters of land.

The projections do not take into account finishes and structures, like a boat hangar, helipad and other luxuries on the property.

The Rio mansion's donation to his children happened in June 2013, when the crisis in Eike's empire was evident and the businessman renegotiated billion-dollar debts with creditors from EBX holdings. The two houses belonged to the former-billionaire since the end of the 1980s.

OGX was facing a very delicate situation, with shares plummeting, after confirming that oil would not be taken from many of its fields. The oil company and OSX shipyard delayed payments to banks and suppliers.

In December, when Eike put the home in Angra dos Reis in his sons' names, both companies had already requested bankruptcy protection.

According to lawyers consulted by Folha who specialize in real estate law and bankruptcy, the donations will only be considered detrimental to creditors if Eike does not have enough money to honor all debts that he took on as an individual.

Batista's representative said he would not comment on the matter and did not disclose the size of the equity that is left for the entrepreneur. He sold, for example, his private jet, while his yacht, Pink Fleet, was turned into scrap.

Translated by JILL LANGLOIS

Read the article in the original language

	Rafael Andrade - 5.jan.10/Folhapress
	Eike Batista donated his principle residences to his sons