Out in the Atlantic Ocean, 130 miles off the coast of Brazil, an oil ship the length of New York City’s Chrysler building is at the center of an escalating legal war.
This battle pits the crude producer founded by Eike Batista, Brazil’s most notorious ex-billionaire, against bondholders who loaned another of his companies $500 million.
That company — Batista’s shipbuilder, OSX Brasil SA — lost the rights to the vessel when it defaulted on bonds in March after filing for bankruptcy protection in 2013. The default hasn’t stopped the oil company, known as OGpar, from continuing to pump oil — free of charge. To bondholders who now own the rig, OGpar says: If you want it, come and get it.
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