Oi bondholder steering committees look to continue restructuring talks

By Caroline Salls

Pittsburgh, Oct. 27 – The steering committees for two Oi SA bondholder groups announced Friday that they extended their confidentiality agreements with the company in order to continue discussions regarding the potential terms of a restructuring for the Oi group.

According to a news release, the extension comes “following two weeks of productive discussions with the company.”

The steering committee said it joined the advisers to a committee of export credit agencies, facility agents and banks represented by FTI Consulting to discuss the restructuring with Oi’s senior management on over the past two weeks.

According to the release, these days of due diligence and constructive dialogue with the senior management allowed the Oi creditor groups and representatives of the ECAs to deliver modifications to a term sheet for an alternative plan or plans of reorganization for the Oi group “that is capable of garnering ample creditor support and providing the company with the necessary quantum of new money, through implementable and viable plan(s).”

Additionally, the steering committee said the potential modifications would provide a viable market-based solution for Oi to appropriately delever its balance sheet and quickly emerge from the restructuring process as a strong, independent competitor.

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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