kublikhan
Joined: 11 Jul 2003
Posts: 2849
Location: Schaumburg, IL |
quote:
Originally posted by article
SAO PAULO, Brazil - A little over a year ago, Brazilian playboy Eike Batista was reputed to be the seventh-richest man in the world and was in the habit of boasting loudly that he'd soon be No. 1.
On Wednesday, his flagship oil company, OGX, filed for bankruptcy. A personal fortune once valued at $30 billion had collapsed into a personal debt estimated at more than $800 million.
Some Brazilians, long since soured on his cocky persona, responded with glee on social networks to the news that Batista's yacht, the Pink Fleet, would soon be sold for scrap. No one wanted, or could afford, the $19-million boat intact.
"He built his empire based on what have now been proven to be very unrealistic expectations," said Tony Volpon, a New York-based economist for international bank Nomura Securities. "He made the cardinal sin of using debt to finance what were very risky exploratory activities in oil, and no one does that." "He didn't understand that oil and gas projects are high-risk ventures," said Pires, of the energy consulting firm. "In this business there is no certainty, just probability. He went around preaching and promising."
Things began to fall apart last year in dramatic fashion. His bodybuilder son, Thor, struck and killed a cyclist while speeding in a million-dollar Mercedes-Benz SLR McLaren that the Batistas had been in the habit of keeping on display in their living room. The public was shocked by Eike Batista's response, as he took to Twitter to blame the "carelessness" of the cyclist, an impoverished cargo worker who had to commute by bike on a dangerous highway. Soon after, it became clear that some OGX wells wouldn't hit production targets, and the money began to fall away. Batista again took to Twitter, this time to attack those who didn't believe in him. After deposits he valued at more than a trillion dollars turned out to be woefully small this year, his company lost more than 96% of its value and has been unable to pay back creditors.
Brazil's Eike Batista: From billionaire to bankruptcy
_________________ Give me a lever long enough and I shall move the world. - Archimedes
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