Brazil’s embattled oil and gas company OGX expects to complete its bankruptcy reorganization and restart output by April 2015.
Oleo e Gas (OGXP3.SA), formerly known as OGX Petroleo e Gas Participacoes, will be merged into a new company within the next six months, CEO Paulo Narcelio said.
Narcelio said the reorganized OGX will come out of bankruptcy debt free and producing oil.
“We will emerge from this as one of the biggest independent oil companies in Brazil,” Narcelio said.
OGX’s 2013 bankruptcy protection filing is the largest ever in Latin America.
Narcelio said he expects the company to emerge from bankruptcy protection sometime in September 2015.
The new company is currently being registered to trade shares in New York as American Depository Receipts, Reuters said.
Shares in the new OGX and Oleo e Gas are expected to trade side by side during the next six months.
Oleo e Gas’s current creditors and shareholders will have their holdings folded into the reorganized OGX.
Investors who purchase shares after the company’s depository receipt filing will own the majority of the new OGX.
The new lenders will hold 65 percent of OGX. Pre-bankruptcy creditors will own 25 percent of the company and pre-bankruptcy shareholders will own 10 percent of the company.
Brazilian tycoon and OGX chief Eike Batista will own half of the pre-bankruptcy stake, or about 5 percent.
Batista, 57, will stand trial on November 18 for a number of financial crimes including insider trading and market manipulation.
OGX expects to restart oil output at its Tubarao Azul field in April.
The company is projecting an initial output of around 3,000 barrels per day.
New plans to drill six production wells and three injection wells at the company’s Tubaroa Martelo field are also in motion.
The field is expected to hit peak production of 25,000 to 30,000 barrels per day in 2016.
Raising the $200 million to $500 million needed to fund the new wells and expansion plans will be put on hold until the company’s restructuring is complete and a new executive board is appointed.