Financial Post | Business

Eike Batista, ranked as the world’s eighth-richest person last year, ceased to be a billionaire after Mubadala Development Co. converted an investment in his companies into debt, further eroding the value of his assets.

Batista’s EBX Group Co. owes US$1.5-billion to Mubadala after the Abu Dhabi sovereign-wealth fund restructured a US$2-billion investment, said three people with knowledge of the deal. The fund no longer has equity in EBX, which paid back US$500-million after renegotiating earlier this month, said two of the people, asking not to be named because terms are private.

Batista had already amassed at least US$2-billion in personal liabilities, meaning the 56-year-old entrepreneur now has a net worth of about US$200-million, according to the Bloomberg Billionaires Index. After peaking at US$34.5-billion when the transaction with Mubadala was announced in March last year, Batista’s fortune has evaporated as missed production and reserve targets at his flagship oil company OGX…

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