Brazil oil company and bond holders fail to agree

SAO PAULO (AP) OGX Petroleo e Gas Participacoes S.A. of Brazilian tycoon Eike Batista says negotiations with holders of $3.6 billion in bonds has ended without an agreement.

The company says on its website Tuesday that months of negotiations with creditors failed to lead to a debt-restructuring agreement. It did not say why.

OGX is now expected to prepare a so-called judicial recovery plan aimed at suspending payment of its debt for 180 days.

Earlier this month, OGX missed a $45 million interest payment on the $3.6 billion worth bonds in the hands of creditors.

OGX says on its website that it needs $250 million "to satisfy near-term liquidity through the first quarter of 2014. Without new funding the company says it expects to run out of cash by late December.

This story has been automatically published from the Associated Press wire which uses US spellings

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