Oi: Authority agrees adjudication of capital increase is unnecessary

By Caroline Salls

Pittsburgh, June 20 – Oi SA announced Wednesday that the Brazilian Competition Authority approved its application for a declaration that there is no need to adjudicate a capital increase of the company through the capitalization of part of the unsecured credits held by qualified unsecured bondholders in accordance with Oi’s judicial reorganization plan.

As previously reported, the plan was approved by Oi’s creditors at a general meeting and ratified by the 7th Corporate Court of the Capital of the Rio de Janeiro State.

The company said the proceeding before the authority will not close until July 4. After that date, provided that there are no opposing statements, the authority’s decision will be fully confirmed.

Upon the confirmation of the authority’s decision, and considering a decision made by the board of directors of the National Telecommunications Agency that granted the previous consent requested by Oi to complete the capital increase, all capital increase conditions set in the plan will have been satisfied or waived.

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

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