Brazil’s Oi seeks court injunction, debt renegotiation

By William Gullotti

Buffalo, N.Y., Feb. 2 – Oi SA and subsidiaries Portugal Telecom International Finance BV and Oi Brasil Holdings Cooperatief UA petitioned the 7th Corporate Court of Justice of the State of Rio de Janeiro after exiting bankruptcy protection in December, according to a material fact released Thursday.

According to the document, the petition was submitted in the context of discussions with Oi’s creditors involving a potential renegotiation of certain debts.

Oi petitioned the court for “urgent injunctive relief” to suspend the enforceability of certain obligations assumed by the company, aiming to protect its cash and, consequently, the continuity of negotiations with its creditors in a balanced and transparent manner.

The specific debts and obligations were not disclosed in the document, nor were the creditors involved.

As previously reported on Dec. 15, Oi exited bankruptcy protection after a Rio de Janeiro court decreed the end of the judicial reorganization. The court’s decree closing the judicial reorganization established a specific system for handling the processes of contestation and qualification of credits in the judicial reorganization of Oi, in order to guarantee equal treatment among the creditors subject to the plan.

Oi is a Rio de Janeiro-based telecommunications service provider. The company 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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