A threatened $31m lawsuit may be just a fleabite for a man once valued at $30bn but it's undoubtedly another problem that Eike Batista doesn't need. Formerly Brazil's richest man, Batista's net worth has dwindled to around $200m, reports Bloomberg, as his oil-to-entertainment empire teeters on the edge of collapse, owing billions to Brazil's banks.
Much-hyped oil and gas discoveries by OGX, his flagship company, have proved to be flops and the many retail investors who helped finance his ventures are furious. Hence the pending lawsuit that accuses him and other directors of insider trading and releasing misleading information about the firm's prospects.
What the commentators said
Consequently, "his demise is also a broader sign of the tougher times ahead for Brazilian businesses now that the excitement over commodities is waning", said Joe Leahy and Samantha Pearson in the FT. In a less optimistic era, capital for much-needed private investment Brazil's greatest weakness may be scarce.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Steve Webb: The triple lock is there to do a job. I’m not embarrassed or ashamed of itThe triple lock means 13 million pensioners will now get an above-inflation state pension boost in April. While the rising cost of the policy has stirred controversy, Steve Webb, who served as pensions minister when it was introduced, argues the triple lock is vital and should stay. Webb speaks to Kalpana Fitzpatrick on the new episode of MoneyWeek Talks – out now.
-
How retirement pots risk running out 11 years early if inflation remains highPension savers could find their retirement income may not last as long as they anticipated over fears that inflation may not slow down
