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UPDATE 1-Batista's shipbuilder OSX Brasil to file for bankruptcy

Friday, 8 Nov 2013 | 4:59 PM ET

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RIO DE JANEIRO, Nov 8 (Reuters) - OSX Brasil SA, the Brazilian shipbuilder controlled by former billionaire Eike Batista, will file for bankruptcy protection, the company said on Friday in a securities filing.

The company said its shareholders approved the bankruptcy filing, which is expected to take place next week in a Rio de Janeiro court. The company also announced the ouster of Chief Executive Marcelo Gomes.

OSX said it hopes to restructure 5.34 billion reais ($2.29 billion) of debt and would become the second company in the Brazilian tycoon's crumbling empire to file for bankruptcy. Batista's oil producer company, OGX Petróleo e Gas Participações SA, sought protection from creditors on Oct. 30.

The OGX petition, citing 11.2 billion reais in debt, was the largest corporate bankruptcy filing in Latin America.

OSX depends on OGX, to which it leases oil production ships, for all its revenue. OSX is 10 percent owned by South Korea's Hyundai Heavy Industry.

($1 = 2.3367 reais)

(Reporting by Sabrina Lorenzi; Editing by Leslie Gevirtz)