Oi bondholder groups, bank group opposed to revised restructuring plan

By Caroline Salls

Pittsburgh, March 24 – Oi SA’s steering committee of the international bondholder committee and an informal group of Oi bondholders are opposed to the revised terms for an amended restructuring plan released by the company on March 22, according to a news release.

“The proposed terms, like the September proposal, fail to treat creditors fairly and equitably, while advancing the interests of its existing equity holders, to the detriment of all other stakeholders,” the committee said.

The committee said the revised terms were not previously negotiated with either of the Oi bondholder groups, and the groups “are extremely disappointed that nine months after the filing for judicial reorganization, the Oi group has continually failed to engage in negotiations with the Oi bondholder groups.”

FTI Consulting, the financial adviser to an informal group of export credit agencies, facility agencies and banks represented by FTI, said in the release that the “FTI group also finds the proposed terms unacceptable and unduly favorable to the existing equity holders. Our clients are very disappointed that the Oi Group failed to engage in negotiations before releasing the proposed terms.”

The bondholder groups and the FTI group jointly represent more than $6 billion of debt issued by various members of the Oi group.

Oi is a Rio de Janeiro-based telecommunications service provider. It filed for Chapter 15 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York on June 21, 2016 under case number 16-11791.

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