Brazilian operator Oi announced it has breached the financial ratios required under some of its outstanding debt issues. According to the operator, it notified GDC Partners Fiduciary Services of the non-compliance, and the latter convened a general meeting of bondholders on the issue for 15 April. Another breach of the covenants was notified to Planner Trustee DTVM, which convened a general meeting of debtholders for the same day.
Brazil's Ministry of Communications said it is following with attention the worsening financial situation of Oi, according to executive secretary Francisco Jose Pontes Ibiapina, but he ruled out financial aid to the company, which ended 2015 with gross debt of BRL 54.9 billion. The support of the federal government will thus remain limited to supporting the company's initiatives to improve broadband coverage, reports O Estado de Sao Paulo. According to the secretary of the ministry, the federal government has an obligation to ensure continuity of service provided by the operator, as it has a public concession.
