June 21th, 2016
Oi Telecom Brazil requests Judicial Recovery
Oi Telecom filed on June 20th for judicial bankruptcy protection for its debts restructuring in Brazil. With debts in excess of €16,000 million (US$ 20 billion), the judicial bankruptcy protection proceeding was filed before the Civil Court in the city of Rio de Janeiro.
Oi is the largest Brazilian telecom carrier of fixed lines and the 4th larger carrier of mobile lines, having more than 70 million of clients. A major part of its indebtedness is formed by financial debts and 70% of this amount is owed to international creditors. The remaining debts refer to suppliers, liabilities and regulatory sanctions.
Oi´s judicial bankruptcy protection proceeding is the largest one ever filed in Brazil. The petition is still under analysis by the judge and, if granted, the judicial protection shall prompt the company to present a Reorganization Plan within the terms and limits as provided by the applicable Law as well as enter into negotiation with the creditors (or the creditors´ committee) according to the classes as provided by Law. The creditors shall also timely request registration of their credits under the proceeding.
Emerenciano, Baggio e Associados – Attorneys at Law, as a corporate and full service Law Firm is available to assist Oi´s national and international creditors in several matters and issues that will follow and arise in the upcoming stages of this proceeding. Our Insolvency and Bankruptcy Legal Practice is highly experienced in complex cases and is able to provide legal advice such as:
- Analysis of the credits, its validity and enforcement under the Law;
- Preparation of legal opinions and comfort letters;
- Representation of the creditors in the lawsuit and homologation of its credits;
- Representation in creditors´ meetings and creditors’ committee;
- Discussions and claims related to the credits of any form.
In case of any question, please feel free to contact us.
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