Eneva signs $200mn put deal for Batista gas assets

Brazilian power utility Eneva has signed a deal with creditor banks to obtain a remaining 66.7% stake in OGX Maranhão, should the oil firm's parent company OGX default on its US$3.6bn debt.

In a statement released Monday, Eneva said it had agreed to pay 200mn reais (US$92mn) for full control of the company, whose gas blocks supply Eneva's Parnaíba thermoelectric complex in Brazil's northeast.

"The put is exercisable as of February 19, 2014 and is conditioned upon antitrust and [regulator] ANP approval of the transaction and availability of credit lines," Eneva said.

Controlled by fallen magnate Eike Batista, OGX is on the verge of requesting bankruptcy protection after missing a US$44.5mn interest payment to creditors earlier this month.

A 30-day grace period allowing Batista to negotiate with bondholders will expire on October 31, fueling rumors OGX is on the brink of the largest ever corporate default in Latin America.

German conglomerate E.ON acquired a controlling stake in Eneva from Batista in May and last month changed the company's name from MPX.

Batista's net worth has fallen to less than US$1bn from an estimated US$34bn last year. Analysts cite unrealistic production targets as the principal reason for the 56-year-old's demise.