It was just early this year when The Economist wrote that the Brazilian government bail-out (of Eike Batista) “looks unlikely, especially after the recent protests, partly motivated by public anger at lavish state spending and perceived “crony capitalism”.

Well, what a difference a few months make. Here is what Valor wrote today about OSX’s loan extensions:

“OSX, the shipbuilding arm of Eike Batista’s ailing conglomerate, is close to reaching a deal with federal lender Caixa Econômica Federal and the Brazilian Development Bank (BNDES) to extend the maturity of R$900 million in loans, a person close to the the situation said. BNDES already had allowed a two-month extension for a R$418 million loan and seems set to agree with longer terms. Votorantim, the loan’s guarantor, is also going along with the extension, the person said. Negotiations now involve a R$450 million loan with Caixa, guaranteed by Santander, which hasn’t announced its willingness to go along with the new terms. People close to the negotiations say the bank’s Spanish headquarters are balking at the deal. Votorantim, Santander and BNDES declined to comment.”

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