After a landmark restructuring, a key telecommunications provider can continue serving more than 58 million customers and employing more than 57,000 people.
US$20 million of debt held by creditors on four continents
When Oi, S.A.—one of Brazil’s largest telecommunications companies—filed formal insolvency proceedings, the debt restructuring process involved the legal systems of Brazil, the US, the UK, the Netherlands, Portugal and several other jurisdictions. Intense disputes complicated efforts to balance competing interests of diverse global creditors as well as Brazilian regulators.
Negotiating an innovative international agreement
As Oi's international restructuring counsel, our lawyers in Miami, São Paulo, New York and several European offices created legal protections for the global assets and business interests of Oi and its subsidiaries in multiple countries. Formulating an innovative restructuring plan, under which Oi issued new debt and equity securities and restructured its export credit facilities, finally resolved months of intense negotiations among various classes of creditors and stakeholders.
Dialing up plans for growth
As part of the restructuring plan, bondholders agreed to backstop an SEC-registered rights offering of BRL 4 billion to support Oi’s future growth. Oi now plans to compete aggressively as a going concern, while expanding its fiber-optic broadband services and 4G cellular networks.
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