Brazil's OGX in talks with Vinci, others for 'options'

Reuters

SAO PAULO, Oct 18 (Reuters) - OGX Petróleo e GasParticpações SA, the ailing Brazilian oil producercontrolled by tycoon Eike Batista, said that it is in talks withVinci Partners and other potential investors for options about apotential capital injection.

So far there has been no binding decision with Vinci or theother potential suitors for the future of the company, OGX saidin a securities filing early on Friday.

"As soon as any negotiation with a potential investor isconfirmed, the company will make the necessary regulatorydisclosures," the filing added.

OGX, which currently has $3.6 billion in outstanding bonds,was forced to the negotiating table after missing a $44.5million interest payment on its debt on Oct. 1.

The company has 30 days from the missed payment to reach anagreement with bondholders or be declared in default, whichwould be the largest ever corporate default in Latin America,according to Thomson Reuters data.

Vinci, responding to media reports, this week denied that itwas in talks with OGX for a potential takeover.

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