Eike Batista has been in the news a lot this year. Previously Brazil’s richest man, Eike has lost around 99% of his $34 billion fortune within the space of a year. However, now Eike Batista is coming to the end of the road as his flagship oil company, OGX Petroleo e Gas Participacoes SA (BVMF:OGXP3) (OTCMKTS:OGXPY) is currently in line to file for bankruptcy protection within the next few days.

Eike Batista

Eike Batista’s OGX bankruptcy

This latest chapter the billionaire’s impressive fall from grace would result in Latin America’s biggest corporate bankruptcy to date. Additionally, the failure of OGX Petroleo e Gas Participacoes SA (BVMF:OGXP3) (OTCMKTS:OGXPY) would tear apart EBX, Batista’s conglomerate, which has interests in everything from floating restaurants to gold mines.

This bankruptcy prediction comes as OGX Petroleo e Gas Participacoes SA (BVMF:OGXP3) (OTCMKTS:OGXPY) runs out of time to thrash out a deal with creditors after the company missed a $45 million payment on its bonds at the beginning of October. After missing this payment, OGX was granted a grace period of 30 days to discuss restructuring with creditors. This deadline expires on the 31st of October.

Eneva agreement with OGX

However, during the past few days there have been some developments that have angered many creditors, who will be left with nothing if the company fails. In particular, on Monday, Eneva SA (BVMF:ENEV3) (OTCMKTS:ENEVY), the energy company that Eike Batista ceded control of to Eon this year, entered into an agreement with OGX Petroleo e Gas Participacoes SA (BVMF:OGXP3) (OTCMKTS:OGXPY)’s banks to acquire the struggling company’s natural gas business. The natural gas division of OGX is the only part of the failing company that is worth anything as it has significantly more exploration success.

The sale of the natural gas business means that creditors are unlikely to receive anything in the event of OGX Petroleo e Gas Participacoes SA (BVMF:OGXP3) (OTCMKTS:OGXPY)’s liquidation as the company has very few remaining assets. Indeed, the company’s only producing oil wells, Tubarao Gato, Areia and Tigre are scheduled to close next year as technology is not available to unlock to reserves hidden under the seabed.

That said, since it was revealed that these wells were not going to yield the results promised, OGX has pinned its hopes on the Tubarao Martelo field, which it had hoped to bring into production next month. However, production from Tubarao Martelo now seems unlikely.

EBX’s integrated nature

Unfortunately, the vertically integrated nature of Eike Batista’s EBX nature means that the loss of OGX will likely take down the whole pile of cards. In particular, the loss of OGX will almost certainly effect OSX, the offshore marine company which counts OGX Petroleo e Gas Participacoes SA (BVMF:OGXP3) (OTCMKTS:OGXPY) as its largest customer. Elsewhere, CCX is running into problems developing its integrated coal mining project as the price of thermal coal collapses and LLX is struggling to get the Açu Superport, the largest industrial port complex in Latin America completed.

With his empire collapsing around him, Eike Batista needs cash and according to Business Insider, Eike has been forced to sell some of his expensive toys. These toys include, but are not limited to a Gulfstream 550 jet worth around $35 million, a Embraer Legacy jet worth around $25 million, a 177 foot yacht named the Spirit Of Brazil worth around $2.5 million and the 91 year old landmark Hotel Gloria in Rio de Janeiro for $103.2 million.