(MENAFN- AFP) Shares of Brazilian magnate Eike Batista's OGX oil firm plummeted more than 35 percent to a low of 0.11 real here Thursday, a day after it filed for bankruptcy protection.
Earlier in the day, trading in the OGX stock, which in 2010 was worth as much as 23 reales, was suspended for one hour on the Sao Paulo bourse.
The stock closed at 0.17 real Wednesday, and OGX's rout pushed the bourse's Ibovespa index down 0.77 percent Thursday.
The debt-ridden company meanwhile announced that it had reached agreement to sell its OGX Maranhao unit, which exploits gas in the northeastern Paranaiba basin , for $90 million to Germany's E.ON utility and Brazilian private equity fund Cambuhy Investimentos.
As part of the deal, the two companies are to invest $112 million in OGX Maranhao.
Wednesday, OGX filed for bankruptcy protection in Rio de Janeiro to avert default after debt-restructuring talks with creditors failed.
Credit rating agency Moody's said that with OGX's debts of up to $5.4 billion, this was the biggest bankruptcy protection process in Latin America since 1990.
If bankruptcy protection is approved, all of OGX's legal actions and debts will be suspended for 180 days.
OGX has 60 days to present a restructuring plan while creditors have 30 days to come forward and then hold an assembly to vote on whether to accept the plan. The process can last six months.
Bankruptcy protection triggers the suspension of OGX shares trading on the Sao Paulo bourse but there is no deadline for this to occur.
The G1 news website reported that as of Friday OGX shares would no longer be included in any of the Sao Paulo bourse's indexes. There was no immediate confirmation from the exchange.
According to its own data, OGX owes around $3.8 billion to its international creditors and banks.
But Brazilian press reports put the figure at $5.4 billion in view of other commitments with suppliers and clients.
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