A short summary for those of you needing to be brought up to speed: after having worked himself up to a net worth of $30 billion in the Brazilian mining industry, Batista lost the majority of his wealth under shady circumstances. As of our last update, his personal fortune had drastically diminished, and he’d declared himself to be “practically bankrupt,” although since his net worth still ran in the hundreds of thousands of dollars, his definition of poor might differ slightly from yours and ours.
Unfortunately for him, after having recently faced a continued flurry of criminal charges and other struggles related to his downward spiral, Batista can now erase the word practically from the “practically bankrupt” description. The government has frozen the majority of his remaining assets, and his empire is imploding.
According to Reuters, companies belonging to the former mogul have officially begun to file for bankruptcy:
Failure to meet production promises at his OGX Petroleo e Gas SA oil company in 2012 started a decline in EBX group shares. Batista, who used his stock to borrow money and finance EBX projects in the face of multi-year delays, ran out of credit and his fortune evaporated. OGX and shipbuilder OSX Brasil SA sought bankruptcy protection in October and November of 2013. MMX Sudeste Mineracao SA, an iron-ore mining company controlled by Eike Batista filed for bankruptcy on October 15, 2014. (Reuters).
This makes the third instance of individual units in his former empire filing for bankruptcy in recent days. With Batista still under water and no sign of a turnaround in the near future, it’s our prediction that the domino effect will continue as his companies slowly topple.
This is unfortunate, since the real losers will be the Brazilian citizens who make their livings in these companies. It’s our hope that their talents will soon find new homes.
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