How Eike and Ricardo K cheated their partners.

Eike Batista's agreement with creditors, negotiated by Ricardo Knoepfelmacher, represented a hard blow to minority shareholders; they, who held 50% of the former OGX, were diluted and left with only 5%; Eike, who had promised to inject US$1 billion into the company to avoid a crisis of confidence, gets rid of the obligation and preserves his personal assets; thus, a shameful chapter in the history of national capitalism closes, which will end up in the courts.

December 27, 2013, 18:33 AMUpdated July 10, 2018, 18:00 pm

Eike Batista's agreement with creditors, negotiated by Ricardo Knoepfelmacher, represented a hard blow to minority shareholders; they, who held 50% of the former OGX, were diluted and left with only 5%; Eike, who had promised to inject US$1 billion into the company to avoid a crisis of confidence, gets rid of the obligation and preserves his personal assets; thus, a shameful chapter in the history of national capitalism closes, which will end up in the courts (Photo: Felipe L. Goncalves)

247 - In October 2012, when the oil company OGX faced its first crisis of confidence, then-controlling shareholder Eike Batista publicly demonstrated that he would put his hand in his pocket, if necessary, to prevent the company's collapse. In a relevant fact disclosed to the market, he promised to invest US$1 billion in the company, buying shares at R$6,30, in an operation known as a "put" option.

In other words: if Eike himself was willing to buy shares at that price, why shouldn't minority shareholders do the same? Faced with this promise, thousands of unsuspecting people invested their savings in OGX stock. At that time, the company's board members included prominent figures in the market, such as former minister Pedro Malan and former Supreme Court Justice Ellen Gracie.

This year, when OGX revealed it didn't have the oil promised by Eike, its shares plummeted to pennies. Without cash, it was time to demand that Eike fulfill his promise and invest US$1 billion of his personal wealth in the company. However, the promise made to the market, in a relevant fact approved by the Securities and Exchange Commission, fell through, and investors began talking about suing not only Eike, but also board members Malan and Ellen Gracie (read more). here).

After that, Eike hired the consulting firm Angra Partners, owned by businessman Ricardo Knoepfelmacher, to negotiate an agreement with creditors and defend the company's interests. However, Ricardo K, as he is known, defended Eike's interests very well, forgetting about the minority shareholders, who suffered a real "deception".

Yesterday, when the agreement between the former OGX and its creditors was announced, it became known that those who previously held 50% of the company had their stake diluted and will now only own 5%. The creditors, led by funds from companies such as Pacific Investment Group and Pimco, will be the new owners. And, under this condition, they decided to forgive the public obligation – assumed by Eike Batista – to invest US$1 billion in the company.

Result: while the controlling shareholder Eike Batista had his assets protected, the other shareholders were treated as "minority" shareholders – and not minority shareholders.

Given this, this shameful chapter of Brazilian capitalism will end up in court. "The 'put' option is an obligation Eike has to the company and to us, the minority shareholders. The creditors are not yet the owners of OGX and cannot forgive this debt. This is unacceptable," said economist Aurélio Valporto, one of the minority shareholders of the oil company. "If Eike had put up the money, OGX wouldn't have gone into bankruptcy protection, there wouldn't have been an agreement with the creditors, nor dilution of the minority shareholders," agrees programmer Maurício Nahas, who also owns shares in the company.