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Oi bondholder group pushes for negotiation of alternative plan terms
By Caroline Salls
Pittsburgh, May 24 – The steering committee for an informal group of Oi SA bondholders is seeking to negotiate an alternative to initial or revised reorganization plan terms put forth by the company, which the committee says favor holders of existing equity interests over bondholders and other creditors, according to a statement filed with the U.S. Bankruptcy Court for the Southern District of New York.
The committee said it “is not aware of a single third-party creditor that has publicly supported the initial company plan or the revised economic terms.”
In addition, the committee said Oi has refused to negotiate with the bondholders regarding plan terms.
“Although the steering committee is willing to continue to act constructively, the fact that nearly a year has passed and the company has shown no sign of acting in good faith has members of the steering committee quite concerned, not only over the willingness of the company’s board and management to do so, but also over the terms of the plan that will ultimately result,” the committee said.
As a result, the committee said it was reserving its rights related to the recognition and enforcement by the bankruptcy court of any plan that preserves the company’s currently proposed terms.
As previously reported, the committee proposed its alternative plan terms in December. Oi’s revised terms were announced and approved by its board of directors in March, although the committee said no amended plan has been filed incorporating those terms.
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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