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From World's 7th Richest Man To Margin Calls In 15 Months
My how the 'over-levered and cross-collateralized debt-is-wealth' mighty have fallen. Eike Batista, Brazilian entrepreneur, was the 7th richest man in the world in 2011 but as Forbes recently noted, he is the 'biggest loser' on their list (losing an incredible $2mm per hour), ending 2012 in 100th place after his biggest holding - OGX Petroleo E Gas - slumped 80% in the last year (and a stunning 43% in 2013 alone) which means his net worth has plunged 20% YTD (according to Bloomberg). While he has the yacht, cars, speedboat, and jets to go with someone who apparently has a net worth of $9.9bn, he now has one more thing to worry about...
- *BILLIONAIRE BATISTA SAID TO FACE COLLATERAL CALLS FROM BANKS
As Bloomberg notes, the billionaire faces demands from creditors to boost collateral as his other company MPX Energia saw its stock fall to record lows (as cross-collateralization leads towards a vicious circle). "Doubts about the group continue," one analyst notes as net debt at Batista's six publicly traded units more than tripled last year, "he really has to something to prove he isn't having a cash problem." On the bright side, we are sure his girlfriend will stay with him.
His largest holding OGX...
Via Bloomberg,
Eike Batista, the Brazilian billionaire whose oil-company shares fell to a record low last week, is close to selling a stake in MPX Energia SA (MPXE3) as he faces demands from creditors to boost collateral, people with direct knowledge of the matter said.
Among Batista’s biggest creditors is Sao Paulo-based Itau Unibanco Holding SA, with about 5.5 billion reais ($2.8 billion) in loans outstanding, said two of the people, who asked not to be identified because the matter is private. Batista borrowed about 4.8 billion reais from Banco Bradesco SA and 1.6 billion reais from Grupo BTG Pactual, not counting a credit line of $1 billion BTG provided earlier this month, the people said.
Batista, 56, used shares of his publicly traded companies as collateral for loans that helped build his empire of commodities and energy businesses, held as units of his EBX Group Co., the people said. Shares of his oil and gas company, OGX Petroleo e Gas Participacoes SA (OGXP3), plunged 8 percent in the past year, and Batista is trying to reduce collateral requirements by selling assets to pay debt, the people said.
“A big part of investors’ mistrust now comes from the fact that Eike may be forced to cover margin calls on his debts,” Leonardo Brito, an equity analyst at hedge fund Teorica Investimentos, said in a telephone interview from Rio de Janeiro. “Doubts about the group continue.”
Net debt at Batista’s six publicly traded units more than tripled last year to a combined 15.8 billion reais, according to data compiled by Bloomberg based on the latest available figures. The companies posted a combined net loss of 1.68 billion reais in the first nine months of last year amid missed project targets and rising costs.
...
Batista, whose personal wealth declined about $25 billion in the past year as the share prices tumbled, can use the short- term liquidity line he received from BTG for any of his companies and for any purpose, including paying debt as a way to reduce collateral needs, one of the people said.
Itau, Bradesco and BTG declined to comment on collateral calls, according to bank officials who asked not to be identified in keeping with company policies.
...
Batista also would sell MPX shares to the public in the divestiture, which may raise more than $2 billion, the person said. An EON official declined to comment on the talks.
...
Batista sold part of the holding company EBX last year to Abu Dhabi’s Mubadala Development Co. and General Electric Co., slowing an expansion into mining and energy in Brazil, Colombia and Chile to focus on raising cash to boost output at existing projects.
Batista also aimed to sell all of his gold business, AUX, after disclosing plans last year to divest a 49 percent stake, two people familiar with the matter said last month. Vancouver- based Goldcorp Inc., the world’s second-biggest miner of the precious metal by market value, entered the talks for AUX after an agreement to negotiate exclusively with Qatar’s government expired in October, the people said. The pace of negotiations for AUX has slowed and a deal may not happen, one of the people said.
Batista also sought to sell shipbuilder OSX Brasil SA (OSXB3) to Sete Brasil Participacoes SA in exchange for a stake in the oil- rig contractor, according to two people with direct knowledge of the matter. He eventually gave up on the idea, Folha de S. Paulo reported in October, citing an interview with Batista.
OGX share’s price fell 44 percent this year, the second- biggest drop among 125 companies in the FTSE All World Oil & Gas Producers Index (AWOGPU), and investors are betting it will fall more as short-seller positions increase. ...
“He really has to do something to prove he isn’t having any cash problem,” Brito at Teorica said. “Maybe selling an asset, like MPX, or doing a farm-out at OGX; anything that proves that he has assets that he can sell at a good price.”
His Yacht
His Jet
His Speedboat
His Son's Girlfriend
... from another angle...
His Girlfriend
Could be worse we guess...
Two things spirng to mind... funny how leverage works both ways AND the joys of rehypothecation and cross-collateralization in this case are a perfect example of why when and if the world has a greater-than-5-to-10% correction in asset prices, the panic buttons will be hit hard...
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DAT ASS
I hope he spent it wisely on hookers and fine wine.. instead of just wasting it.
the tide is going out bitchez
"On the bright side, we are sure his girlfriend will stay with him."
Its always good to have some solid assets to fall back on ;-)
Glad to see Ashley Dupre has stabilized her life.
Don't care about the rich dudes or their girlfriends. So, she's got a nice ass. They can go screw themselves. What I do care about is that gold's holding above $1600. Now, that makes me excited.
Man, he took a haircut on that play...Is that the equivalent of a 'stock Brazilian'?
I guess they're right about the camera adding 10 lbs, but in this case it looks as if it added about 30 lbs.
Popozuda is the name for Brazilian large-ass.
Cankles
better brazilian prostitutes in http://www.041vip.com.br/novo/home/detalhes/4397/Exclusivas
What you owe doesnt matter, as long as the bling gets the ass
And why is every comment about the ass?
Cause we can't see any nips or the big V-giny.
"And why is every comment about the ass?"
Because it"s epic. And the rest of the toys are bullshit.
actually the rest of the toys are there to get the epic ass
...after many hours of study, and with 55 yrs of experience , i feel qualified to say that this ckick has the finest ass on the planet....the only thing that could make it better, would be having it abusing me.....blows that smokin hot israeli chick on the beach with the machine gun to shame....
That's some serious tail... risk...
No. Not even close. THIS is the finest ass on the planet:
http://boston.barstoolsports.com/files/2011/10/keyra_augustina_011.jpg
You're welcome.
OMG, I can hardly look away. If any piece of ass was calling for a brick, its that one. (Step 1: use the brick to knock them out. Step 2: ..., Step 3: profit!)
boing
In the end, they began to cannibalize each other.
You mean they'll eat each other out?
so when did we start just doing photo spreads without articles?
blame zuckerfucker
Look at pictures 2 and 3 of his girlfriend. What happened to her boobs?
As Dow liked to say, Better Living Through Chemistry, in this case, silicone.
Gonna wax pedantic, "Better Things for Better Living...Through Chemistry." was a DuPont slogan.
for the reading comprehension-impaired:
the first 2 photos are of his son's gf
the 3rd photo is his gf
RTFA. The first two pics are his son's girlfriend; the last pic is his girlfriend. Why is his son's girlfriend relevant? Because she brings more traffic to the article, that's why.
Looks like nip and tuck to me.
No kidding, I love the girl.
How many times can you UP arrow yourself? 20 UP arrows on 58 comments? I call bull shit
You don't need to post a comment to up or down arrow another comment. There were over 8000 reads so anyone of them could have up arrowed the dude.
Bazillion Ho's...
pure milk-chocolate orgasms, bitchez!
Chocolate Fudge :)) like tasty Thai girlies.
Flavia Sampaio is a hottie and an attorney. We'll see if 4 years of bliss means she sticks by her margin called man. As for the son, he chose the one that gets naked more often. Google images for Nicole Bahls. Day-um gurl.
Is she a Kardashian?
No. The girl in this pic is a virgin I'm sure.....
Is he black?
No, just spends like one apparently.
LOL nice
Let this be a lesson to all you billionaire out there. spend all your time with your face buried in fine ass whilst jetting to your motorboat, you to will face margin calls.
spend all your time with your face buried in fine ass whilst jetting to your motorboat, you to will face margin calls.
...and hopefully you'll run out of gas before you run out of ocean.
Just one girlfriend? Loser.
He seems to have missed the whole "diversification" concept.
With a middle name like Fuhrken, one would think he had better game.
"Game" is indicative of gynocentric preoccupation.
Used to be, before rampant gynocentric thought (in the west at least), man would engage in _healthy_ competition with his fellow man to go build/add to civilization, and he wouldn't have to worry about shit like Game. Bitches gravitate to us because they tend to like civilized life and those who participate in its construction. THEN you fuck them. Net gain to humanity: improvement (or establishment) of civilization.
These days, man engages in _unhealthy_ competition with his fellow man _just_ for a _hint_ of access to females. All the cutthroating and cockblocking and destructive behavior for what -- what's the net gain to humanity here? Your dick gets wet? This is a big factor in western decline that's not discussed, even here.
I blame femminists
Im having a better year in Jr Mining stocks and this is the worst ever.
His girlfreind.... Meh Has a French nose. Must be Sarko's daughter. And she doesn't have much for hips.
Is she for sale?
"How much for the little girl? the women? How much for the women.. I want to buy your women"
http://www.youtube.com/watch?v=mvZgwtpPmLY
If he needs to sell 'ass'ets, I would like to put my bid in for his girlfriend. On an hourly basis, that is.
Can someone please e-mail this post to Mr. " That's why I'm richer than you" Dimon ?
Nice Freudian picture sequence.
full size and photo set: http://hotwomeninbikini.blogspot.com/2011/02/brazilian-model-nicole-bahl...
Better than staring at charts all day I guess.
Dude...
Had to ruin it by posting the "frontal" yikes
Sorry man, I was shocked at that too.
On the bright side, I now know for certain I've banged hotter chicks than a billionaire's heir, that's not so bad.
It appears his girlfriend has experienced some deflation in the frontal region.
It's not the face you fuck!
It is the fuck you face!
Well, I'll bet that's true...
Seek./.. Zorba raises his bid.
Loss of confidence is the theme of this week, I think.
I see what you did there...lol.
Son's girlfriend needs a nose job, 9.9 bln can't afford that? Heh. I like the speedboat, though.
For a young Brazillian is is a 3.5
out of 10?
#7 in world ................that would have to be the largest fall in history........
No. Check out a long term graph of Japanese firm Hikari Tsushin (9435.T) and note the rise and fall of its founder, Yasumitsu Shigeta. At his peak he was in the Top 3 with a NW of $41 billion. Then the stock fell 99.7%. Sure he can still afford his miso ramen and gyoza, but a decade ago he could have bought Cyprus. Also, there was a Russian mine owner---can't recall his name---who had a bad 2008.
ok,
how much for the girlfriend?
If you have to ask, you probably can't afford her!! LOL
I like her ass. I'd like to wear it as a hat.
I guess you could call it a...........Brazillain Ass Hat.
YeeeeeHaaaaaa. Summer SoCal beaches soon to arrive. Nothing keep me running faster on the track than some of that in front of me.
I try not to look but as they say practice makes perfect.
Hope the girls don't mind skin cancer due to global warming caused by oil company's like his.
Uh... how does global warming cause skin cancer?
I mean carcinogenic particulate from exhaust, toxic chemicals in the ground and water, and pollution from petroleum plants sure... but global warming?
Warm weather makes Brazillain girls want to take clothes off. Ok, they really don't need a reason.
Until she finds out he mortgaged her jewelry and shoe collections too.
When commodity prices and especially oil fell in 2008, just about every Russian Billionaire was in much worse trouble. When Lehmnan went under, most of their wealth was gone and the margin calls (in dollars!) were rolling in.
But not to worry: Ben Bernanke came to the rescue (he always does, doesn't he?) by opening a $500B "currency swap line" with the Russian Central bank, which was used by the Kremlin to bail out the Kremlin-friendly oligarchs and to buy out at "distress prices" the less friendly ones. And thanks to Bernanke's "reflation" strategy oil went back to $100+, and most of the oligarchs fully recovered their wealth, while the Kremlin-dwellers became that much wealthier from the assets they've acquired in crisis.
Most I ever lost in an hour was $700K ...Aug 13 2008, the infamous "Discount Window" announcment.
Infamous in your own mind.
Bet that ass ain't gonna see as much action as Cypriot ass.
Cash rules everything around me...dolla dolla bill y'all
- Prime Brokers
Finally, real pictures and not just thumbnail teasers - you guys are learning.
Are you sure that's his yacht? It looks like the crappy ferry I took to Cyprus.
I am trying very hard to summon up some sympathy, but if I strain any harder I'll shit myself.
they let her into the ocean?? christ, they'll never get that smell out of the water.
No, no, no...the punchline is "They'll never get that smell out of the fish..."...
Both those boats and the aircraft use heaps of fuel, and it has to meet a fairly tight standard.
He may have money, but if that fuel's not there, all the money in the World will not make it appear "by majick"!
And without fuel, they are just expensive hulks, going nowhere.
Sailpower is by far the best (and possibly the only realistic) hedge against any fuel crisis. Wind's still plentiful, and still free.
For 2 million an hour women will do interesting things.
Are you implying that his girlfriend is a high priced whore?
Did you know,that his son :Thor Bastista,was attacked by a bicicle,with the speed of 130 km,and almost was killed??
Sadly,the poor guy on the bicile,was not so lucky,that he survived the meeting with a super Mercedes:
B as in brick,thick as a brick:You lookout,2014,put on the bulletproof vest.
The good side,the proof girls are learning Anglish,so they can say,dollar/Euro,matter not!
Who gave them Choop 2014,Sep Splatter.Boomtown Rat,come um salgadinho con carne humano,nordeste!
Her ass has nothing on my avatar.
my avatar is even better... bit small tho
http://www.supertangas.com/
As long as they got the curves, I got the angles! :>D
.
...asked not to be identified because the matter is private.
Not anymore it ain't.
What does this guy's kid do that's worth a shit?
Let me guess, he's one of these My-Dad-Has-A-Dealership guys...
(~15 seconds) http://www.tubechop.com/watch/1035053
His girls ASSets are making me go long.
My position is longer than yours.
I was told your position is Microsoft.
Both of you, please cover your shorts.
'
''
'
And when da money's gone…
So is da girl!
•J•
V-V
She better lose some wieght if she dreams of catching another billionaire.
Billionaire yet he still ``invest`` in the totally rigged market... how fucking ridiculous. Sell everything, stay out of the markets forever, you'll still have plenty of money when you die and your son dies.
It sounds like the only companies he owned stock in were his own companies.
"Among Batista’s biggest creditors is Sao Paulo-based Itau Unibanco Holding SA, with about 5.5 billion reais ($2.8 billion) in loans outstanding, said two of the people, who asked not to be identified because the matter is private."
Ain't too private if hamstercheese knows about it.
The guys is (was) worth 10B and he has a, wtf is that, a 7 person Lear? Are you kidding? That's one of those jets with the last seat that is also the toilet. Anybody worth that sort of money will have a G5 or more. The big boat looks like a fucking passenger taxi boat - can't be real. The speedboat is nice - not sure if it is an Azimat or Pershing or what. Only cool toy I see. I have found better looking women at dollar bars.
What an a-hole, probably got bonned when the DXY shot into hyperspace and destroyed BRL margins. Brazil is f*cked.
Yo, "how much for the wife?"
http://youtu.be/ZLUiK2lbN2s
Ohhh his jet plane looks so phallic...
Is she anywhere close to 56? Doesn't seem like it. Nice ass though.
This joker ain't got nothing on Australia's very own Nathan "Fat Fuck" Tinkler in the riches to rags department
and that's why wealth isn't fucking sheets of paper that are supposed to represent an accurate value of the market for a coporation's sales and assets. When near 100% of a corporation is fraud, near 100% of the wealth held by executives is fraudulent.
Fuckerberg and the rest of the trash to billionaire set are only wealthy because some idiots assigned multi billion dollar valuations to corporations worth less than the mineral composition of the shit I took earlier today. Worthless pieces of paper, sorry 1s and 0s today, can somehow be traded for yachts, jets, mansions, and girls in their 20s with tight asses.
Take away the stock market and how many of these billionaires would be left?
If your corporation is billions of dollars in debt, and you have no profit, how the fuck can you be a billionaire? What a con game this fucking world has created.
Like Donald fucking Trump going bankrupt how many times, yet te banks gave him a couple hundred million to live on until he got back on his feet leveraging out worthless assets for real cash.
Bring on a 99% Cyprus wealth confiscation tax on stock holdings. About time we rid the world of unearned wealth.
It just goes to show that, for people like that, it is never about a 'having enough money' problem. It is almost always about 'the greed to get more' problem. And this is usually their downfall.
No sympathy
I think she wants to have sex with me! Plump ass on that one.
Tight!