Oi postpones disclosure of financial statements for 2017 to April 12

By Caroline Salls

Pittsburgh, March 29 – Oi SA announced Wednesday that it postponed the disclosure of its financial statements for the 2017 fiscal year to April 12 from March 28.

According to a news release, the disclosure was postponed because of “the complexity of the impacts of the judicial reorganization process and the approval and confirmation of the judicial reorganization plan on the preparation of the company’s financial statements.”

Oi said its ordinary general shareholders meeting will be held on April 30. The examination, discussion and voting on the financial statements will be deliberated at an extraordinary general shareholders’ meeting, which will be scheduled immediately following the disclosure of the audited financial statements.

According to the release, the judicial reorganization process led to discussions between the company and its external auditors about details regarding the accounting recognition of some assumptions within the plan and the effect of those assumptions on the opening balance for 2016 and on the Oi’s financial statements for the 2016 and 2017 fiscal years.

Oi said the accrued accounting effects to be recorded in shareholders’ equity of 2017 will be roughly R$21 billion.

The company said the accounting effects will result in negative shareholders’ equity as of Dec. 31, but the value of the shareholders’ equity will become positive in 2018 because of the expected adjustments in 2018 resulting from the recognition of the fair value of its new debt under the approved and confirmed plan.

Oi said the accounting effects will not have an impact on its cash or routine EBITDA for the years ended Dec. 31, 2016 and Dec. 31, 2017 and do not affect the plan nor the financial flows used to evaluate the company and its subsidiaries.

Oi is a Rio de Janeiro-based telecommunications service provider. It filed for Chapter 15 bankruptcy on June 21, 2016 in the U.S. Bankruptcy Court for the Southern District of New York under case number 16-11791.

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