Oi enters talks with bondholders group

News General Brazil 25 APR 2016
Oi enters talks with bondholders group
Brazilian operator Oi has taken a further step in restructuring its debt by entering into talks with a group of bondholders. The operator said it signed a non-disclosure agreement with Moelis & Company, an advisor acting on behalf of an ad hoc group of holders of the bonds issued by Oi and certain of its affiliated companies. Oi said the agreement is an initial step toward "productive and expeditious discussions regarding the terms of a potential restructuring". 

According to previous announcements, Oi retained PJT Partners as financial advisor to assist in evaluating financial and strategic alternatives to optimize its liquidity and debt profile, and it has engaged Barbosa Mussnich Aragao and White & Case as its legal advisors. 

Oi will start talks to restructure BRL 14 billion in debt already this week, sources familiar with the situation told Reuters. Oi and its advisor PJT Partners will sit with a group of about 25 bondholders, including Pacific Investment Management, BlackRock and Citadel. Oi wants to negotiate with bondholders that "care about the future of the company," said a second source.

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