Oi unit bond default leads to insolvency filing in the Netherlands

By Caroline Salls

Pittsburgh, June 28 – Oi SA said Syzygy Capital Management Ltd. filed an insolvency proceeding in the Netherlands Court against Oi Brasil Holdings Cooperatif UA based on the default by Oi Brasil Holdings on $800,000 in bonds.

“This aggressive action by a minority holder was not unexpected, and Oi is fully prepared to take all available measures, including in the Netherlands, to protect against such actions and does not expect any impacts to the judicial reorganization process in Brazil,” the company said in a news release.

“Notwithstanding this recent action taken in the Netherlands, Oi looks forward to continuing to engage in constructive reorganization discussions with a majority of creditors in connection with the Oi companies’ judicial reorganization proceedings in Brazil.”

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

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