brazilian bankruptcy
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http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy Brazilian Bankruptcy OGX Petroleo e Gas Participacoes filed papers in Brazilian bankruptcy court. The company is controlled by Eike Batista, who once seemed on track to become the richest man in the world. This Brazilian bankruptcy is the largest in Latin American history. Batista and his company were unable to come to an agreement with creditors for debts in excess of $5 Billion as valued in US dollars. The Brazilian bankruptcy is unlikely to have an immediate direct effect on Brazil as OGX Petroleo e Gas Participacoes is in its startup phase and not yet producing any petroleum products. However, the company is a caution to those holding foreign bonds or investing in foreign stocks. The major creditors for Batista’s company are American, PIMCA bond fund and Blackrock investment fund. The Brazilian bankruptcy comes as Batista’s net wealth has plummeted by $30 Billion in the last year with falling stock prices of his companies. After a decade of phenomenal growth, Brazil is in a three year economic slump belying expectations that Brazil as well as the rest of the BRICS nations would soon join the first ranks of world economies. What Happened to Brazil? China is what happened to Brazil and the recession is what happened to Brazil. Much of Brazilian economic growth came from exports or raw materials, largely to China. When the recession hit and reduced finished goods orders from North America and Europe China reduced orders for raw materials from across the world. As the Chinese look inward and concern themselves with growth and social stability, Brazil has fewer raw material orders to fill and its economy is in a slump. Even in this scenario Eike Batista is an outlier. The man is a consummate deal maker and promoter. He built upon early success and convinced big investors that his success was exponential. He has his hand in port facilities, mining interests, oil (the current bankruptcy filing), shipyards, and an entertainment company. All of these interests have been cut back and have lost share price. Although Batista has lost $30 Billion as stocks have fallen, his shareholders have lost as much or more. American investors are angry and want blood. So Batista has sought bankruptcy protection.TRANSCRIPT
OGX Petroleo e Gas Participacoes filed papers in Brazilian bankruptcy court.
The company is controlled by Eike Batista, who once
seemed on track to become the richest man in the world.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
This Brazilian bankruptcy is the largest in Latin American
history. Batista and his company were unable to
come to an agreement with creditors for debts in excess of $5 Billion as valued in US
dollars.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
The Brazilian bankruptcy is unlikely to have an
immediate direct effect on Brazil as OGX Petroleo e Gas Participacoes is in its startup phase and not yet producing
any petroleum products.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
However, the company is a caution to those holding
foreign bonds or investing in foreign stocks.
The major creditors for Batista’s company are
American, PIMCA bond fund and Blackrock investment
fund.By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
The Brazilian bankruptcy comes as Batista’s net wealth has plummeted by $30 Billion
in the last year with falling stock prices of his companies.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
After a decade of phenomenal growth, Brazil is in a three
year economic slump belying expectations that Brazil as
well as the rest of the BRICS nations would soon join the
first ranks of world economies.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
What Happened to Brazil?
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
China is what happened to Brazil and the recession is what happened to Brazil.
Much of Brazilian economic growth came from exports or
raw materials, largely to China.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
When the recession hit and reduced finished goods
orders from North America and Europe China reduced
orders for raw materials from across the world.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
As the Chinese look inward and concern themselves with growth and social stability
, Brazil has fewer raw material orders to fill and its economy is in a slump. Even in this scenario Eike Batista is an outlier. The man is a
consummate deal maker and promoter.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
He built upon early success and convinced big investors
that his success was exponential. He has his hand
in port facilities, mining interests, oil (the current
bankruptcy filing), shipyards, and an entertainment
company.By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
All of these interests have been cut back and have lost
share price. Although Batista has lost $30 Billion as stocks have fallen, his shareholders have lost as much or more.
American investors are angry and want blood. So Batista
has sought bankruptcy protection.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
He will likely get sixty days to come up with a
reorganization and payment plan. His creditors will have a
month to accept or reject. Someone in this Brazilian
bankruptcy is going to lose a lot of money.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
Investing promised phenomenal growth has turned into a matter
of investing in risky stocks. Considering that economies do
come back it may be best to wait until Mr. Batista’s
companies bottom out and then look to invest as in the Blood in
the Streets scenario of Mr. Rothschild so long ago.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
Investing Tips Regarding the Brazilian Bankruptcy
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
Timing can be everything in situations such as the
Brazilian bankruptcy of OGX Petroleo e Gas Participacoes.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
The stock trades as an ADR for around six cents a share
and was $2.35 a share a year ago. Before the 2008 market crash the stock sold for over
$200 a share.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy
That fact may make those who invest in penny stocks perk up and consider a low cost long term investment.
By: http://www.profitableinvestingtips.com/investing-trading/brazilian-bankruptcy