Oi: No decision yet on potential reorganization plan changes

By Caroline Salls

Pittsburgh, Jan. 30 – Oi SA’s management has been meeting regularly with creditors, other stakeholders and potential investors, with the intent of gathering impressions, comments and suggestions for the improvement of its judicial reorganization plan, according to a company news release.

Oi said one of the initial alternatives raised in these conversations was the immediate delivery of shares to creditors under conditions that have yet to be defined.

The company said a market value of roughly R$10 billion was used “as a purely initial reference to the value of the total credits of these creditors.”

Oi said this reference value takes into consideration the market value of its securities and the value of the company after the restructuring of its debt.

The company said on Friday that its board of directors will be updated on the progress of the judicial reorganization and discussions with creditors and potential investors at the board’s Feb. 1 meeting and, consequently, will be able to discuss alternatives in accordance with opinions Oi received from creditors or potential investors.

Oi said no definitive decision has been made as of Jan. 27 in connection with any changes to the judicial reorganization plan presented on Sept. 5.

According to a 6-K filed Monday with the Securities and Exchange Commission, Orascom TMT Investments Sarl extended the validity of its suggestions for an alternative judicial reorganization plan until Feb. 28.

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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