Oi creditors approve plan including R$4 billion investment commitment

By Caroline Salls

Pittsburgh, Dec. 20 – Oi SA announced Wednesday that the creditors of the company and six of its subsidiaries approved the companies’ judicial reorganization plan, which includes negotiated changes, at a general creditors meeting.

The subsidiaries include Oi Movel SA, Telemar Norte Leste SA, Copart 4 Participacoes SA, Copart 5 Participacoes SA, Portugal Telecom International Finance BV and Oi Brasil Holdings Cooperatief UA.

According to a company news release, the plan will be submitted to the 7th Corporate Court of the District of the Capital of Rio de Janeiro.

Oi said its board of executive officers believes that the approved plan will allow it to invest in improvements of the quality of its fixed and mobile telephony, broadband and pay TV services and to get stronger by the end of this process.

The company said in a separate release that it entered into a subscription and commitment agreement with creditors, including individual noteholders, the members of a steering committee of an informal bondholders group and some noteholders who are members of an international bondholder committee.

Under the commitment agreement, investors will backstop a R$4 billion capital raise.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.