OGX Petroleo e Gas Participacoes SA (BVMF:OGXP3), the Brazilian energy producer, is reportedly considering filing bankruptcy filing.

OGX

Cristiane Lucchesi of Bloomberg, citing known sources, reports the oil company may file for bankruptcy protection filing in about a month.

OGX Capital restructuring

OGX Petroleo e Gas Participacoes SA (BVMF:OGXP3)’s controlling shareholder, Eike Batista, was Brazil’s richest man and the world’s seventh wealthiest man just a year ago, with a fortune approximating $35 billion.

However, recently OGX announced it was foregoing a $44.5 million interest payment due last week, as it scrambled to avoid debt default. The missed interest payment relates to $1.1 billion in bonds due in 2022.

The energy producer said in a note sent to the market that it opted not to pay because it is in a process of revising its capital structure while at the same time revising its business plan. The company appointed investment banks Lazard and Blackstone to coordinate negotiations with creditors, including those holding notes issued by OGX Austria.

Elaborating further, OGX indicated it has 30 days to take necessary measures before the debt matures.

The energy producer must also pay interest on $110 million in notes due in 2018.

Worst performing corporate bonds in emerging markets

Eike Batista founded OGX in 2007 and the energy major was valued at $30 billion at its peak. With the energy producer missing out its interest obligation, the company’s 8.5 percent bond fell 2 cents last Thursday to fall to a record-low of 14 cents on the dollar.

OGX now has the dubious distinction of the worst-performing corporate bonds in emerging markets.

OGX Petroleo e Gas Participacoes SA (BVMF:OGXP3) shares fell over 95 percent over the past year and were trading flat at 0.22 reals last Friday.

60 days to present restructuring plan

Cristiane Lucchesi of Bloomberg reports OGX Petroleo e Gas Participacoes SA (BVMF:OGXP3) will file for bankruptcy protection in Rio de Janeiro.

If the judge accepts the filing, OGX will have 60 days to present a restructuring plan.

Batista-controlled ship builder OSX BRASIL SA (BVMF:OSXB3) might also meet the same fate. He is reportedly negotiating with creditors to avoid the same process, though it might also seek legal protection.

Eike Batista’s fortunes have dwindled during the past 18 months. Over $30 billion of his fortune got eroded after offshore deposits he had valued at $1 trillion turned out to be duds.