Brazil's Oi submits restructuring proposal to court

Brazil's Oi submits restructuring proposal to court

BRASILIA/RIO DE JANEIRO (Reuters) – Brazilian phone carrier Oi SA on Wednesday submitted a plan to cut its 65.4 billion-real ($ 21 billion) debt burden to a commercial court.

The plan was approved by the company’s board, and creditors of the largest-ever bankruptcy proceeding in Latin America will vote on it on Oct. 23.

The company said in a statement that the plan proposes an injection of up to 9 billion reais into the company, including at least 6 billion reais in cash and part of the debt-for-equity swap. Reuters reported on the proposal on Tuesday.

The reorganization began a year and a half ago and has been marked by disputes between shareholders led by Pharol SGPS SA and Societé Mondiale FIA, and bondholders represented by the Ad Hoc Group of Bondholders and the International Bondholder Committee.

Reporting by Leonardo Goy in Brasilia and Rodrigo Viga Gaier in Rio de Janeiro; Writing by Tatiana Bautzer; Editing by Cynthia Osterman

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