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The Brazilian Oi seeks more than 700 million in financing in its recovery plan

Date: February 28, 2024 Time: 18:41:45

The Brazilian telephone company Oi is seeking urgent financing of at least 4,000 million reais, which the current exchange rate is about 754 million euros, and to renegotiate its debts, according to the judicial recovery plan approved by the company’s Administrative Council.

Last March, the Rio de Janeiro justice expressed the second request for judicial recovery of the largest fixed telephony operator in Brazil after having accepted a first one in 2016, which took six years to conclude.

The judicial recovery in Brazil, protected by the bankruptcy law and which allows the cessation of payments and the operation of companies to avoid bankruptcy, once again suspended the million-dollar debt of the Oi, which amounted to some 29,000 million reais, some 5,471 millions of euros.

He hopes to access new lines of credit

In the plan approved by the board of the Oi -disclosed in a statement to the market on Friday night- in addition to the urgent loan, the company seeks that the negotiation of the payment of the debt does not prevent it from obtaining new ones, even with a possible increase capital. Likewise, access new lines of credit and other forms of deposits, to reduce debt and refinance it.

The implementation of this plan would await the approval of the Seventh Business Chamber of the Court of Justice of Rio de Janeiro, which was the one that upheld the second judicial recovery request of the company.

In 2020, Oi sold its mobile telephony assets for 16,500 million reais, 3,313 million euros, the Mexican América Móvil (Claro) and Telecom Italia (TIM). The company negotiated the debts with its creditors when it first filed for bankruptcy and now intends to extend the term of its commitments.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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