OGX founder and former billionaire, Eike Batista, during happier times (Photo: Fred Prouser/REUTERS)

OGX founder and former billionaire, Eike Batista, during happier times (Photo: Fred Prouser/REUTERS)

According to the Bloomberg article today, a creditor group led by PIMCO has agreed to a $200 million financing deal that would see founder Eike Batista lose control of his Latin American E&P company, Oleo & Gas Participacoes SA (OGX).  This deal would end a 6 week discussion to finalize the debt-for-equity swap that would give creditors control of the company.  This financing will help the debt-ladened oil explorer to emerge from bankruptcy protection and help cover costs at its only producing oil field.  The company has until Feb. 17 to present its restructuring plan to a Rio court.

OGP surged in value in 2009 and 2010 after reporting discoveries at more than 80 percent of wells drilled, allowing Batista to tap debt markets to finance operations. Shares of OGP Have slumped 98 percent since the company started output in January 2012.

Read: Pimco-Led Group Said to Agree $200 Million OGX Deal