Just when Brazilian entrepreneur Eike Batista was making two steps forward, he was brought 10 steps back. Batista, once the richest man in Brazil and the seventh in the world according to the Forbes list, has now lost half of his $25 billion fortune.
Worse than that is his loss of credibility, as Batista’s ability to entice investors has faded. His company OGX Petróleo e Gás, for example, has become the second-most shorted stock in Brazil (shorting a stock is like betting against it, where investors benefit from its declining value). Even credit agencies have lowered his companies' ratings to B- , making it increasingly difficult for Batista to raise capital and meet project deadlines.