Oi negotiates extension of BRL 14 bln in bank debt - report

News General Brazil 15 AUG 2016
Oi negotiates extension of BRL 14 bln in bank debt - report
Brazilian operator Oi is close to reaching a tentative agreement with banks to postpone BRL 14 billion in debt payments without any discounts, reports O Globo. The proposal on the table is to divide up this amount over a period of 15 years, a source familiar with the process said. 

Banco do Brasil is the largest creditor, with BRL 4.4 billion, followed by BNDES (BRL 3.3 billion), China Development Bank (BRL 2.4 billion), Caixa Economica Federal (BRL 1.9 billion) and Itau (BRL 1.5 billion). 

Financial institutions account for just over 21 percent of the total debt of the company, of approximately BRL 65.4 billion. According to the same source, the banks will not accept shares of the operator in exchange for debt.

Categories:

General

Companies:

Oi

Countries:

Brazil

Tags:

Financial funding

Related Articles

BRAZIL 6 SEP 2016

Oi presents debt restructuring plan to court

The board of directors of Brazilian operator Oi approved the terms and conditions of the company's Judicial Reorganization Plan and presented it to the court in Rio de Janeiro managing the company's restructuring process. The plan establishes the terms and conditions for overcoming the company's debt crisis and ensuring the ongoing continuity of the business, including measures for the restructuring of liabilities, obtaining new financial resources and the possible sale of fixed assets.

BRAZIL 2 SEP 2016

Oi talks with govt, sees increase in creditors

Brazilian operator Oi confirmed it has met with government officials on the company's activities, but said this was "natural and common" as part of its business. The company issued a statement at the request of the stock market regulator following reports that the company had met with the government to discuss how to maintain Oi's presence throughout the country and avoid consolidation in the market. Oi said that its representative and representatives of the Brazilian Ministry of Science, Technology, Innova

BRAZIL 22 AUG 2016

Oi creditor group seeks alternative recovery plan

A group of creditors of Brazilian operator Oi led by ACGM is putting together a recovery plan that it believes will be superior to the company's own proposal, ACGM CEO told Bloomberg. The group, which calls itself Consorcio Oi, includes about 20 hedge funds and private equity funds. It said that law firms Felsberg Advogados and Morrison & Foerster joined the team, which besides ACGM also includes restructuring consultancy Integra Associados and two longtime telecom industry executives -- Joao Cox, the forme

BRAZIL 16 AUG 2016

Oi denies press reports on debt reduction

Brazilian operator Oi has denied reports published in local daily 'O Estado de Sao Paulo' regarding the state of the company's debt renegotiation process. According to the newspaper, Oi intends to save approximately BRL 6 billion per year in interest payments alone after the approval of the reorganization plan. The report also stated that the forecast interest savings involve a reduction in the debt owed to banks and bondholders of BRL 50 billion to approximately BRL 7.5 billion. According to Oi, this infor

BRAZIL 11 AUG 2016

Oi revenues fall 3.8% in Q2, EBITDA drops 24%

Brazilian operator Oi, under judicial reorganization, ended the second quarter of 2016 with net revenue of BRL 6.52 billion, down 3.8 percent on the same period in 2015 and 3.4 percent less than in Q1 2016. The company blamed the decline on the poor economic climate, which hurt B2B and prepaid revenues, as well as regulatory price cuts and fewer customers. The operator had a net loss from continuing operators of BRL 656 million in the quarter, widening from a loss of BRL 442 million a year earlier. EBITDA f

BRAZIL 11 AUG 2016

Oi to submit judicial recovery plan by September

Brazilian group Oi is on track to present its judicial recovery plan for the company between the end of August and early September, said CEO Marco Schroeder, reports Reuters. He said the plan will need to satisfy all the various interested parties – suppliers, bondholders, banks, shareholders and new shareholders. It will include creditors converting part of Oi's debt into company shares, he said. Oi filed for protection from creditors in June and has been placed in judicial administration while it negotia

BRAZIL 29 JUL 2016

Oi denies USD 1 bln investment from creditors

Brazilian operator Oi has issued a statement to stock market regulator CVM, in a response to an article published in daily O Globo on negotiations with creditors regarding an investment of USD 1 billion. In the statement, Oi recalls that it maintains and continues to have discussions with Moelis & Company, advisor to a committee of the Oi companies' financial creditors. However, it clarifies that at the moment there is no formalisation or definition from any of the parties of any agreement relating to the t

BRAZIL 25 JUL 2016

Oi shareholder attempts to foil debt restructuring

A dissident bondholder of Brazilian operator Oi is trying to foil a USD 19 billion debt restructuring proposed by the bankrupt telecom company's biggest creditors, reports Bloomberg. Hedge fund Aurelius Capital Management is pushing back against a group of about 70 creditors advised by Moelis & Co, which is seeking a wider array of stakeholders to support its plan after a previous effort collapsed earlier this year. The dispute revolves around bonds issued by Oi's subsidiaries, particularly Telemar Norte Le

BRAZIL 20 JUL 2016

Oi responds to report that debt may rise

Brazilian telecom operator Oi has issued a statement to the Securities and Exchange Commission (CVM) in response to an article by daily O Globo, claiming that its debt may increase by up to BRL 2 billion. Oi said it is evaluating any invoices that have not been processed as of 20 June, the date of filing the application for judicial reorganisation, in order to update the complete list of creditors. However, this survey is not yet complete, so it is not possible for Oi to disclose the present value of the de

BRAZIL 17 JUL 2016

Oi on track with recovery plan - CEO

The negotiations of Brazilian operator Oi with its financial creditors include the entry of new shareholders in the company's capital, said CEO Marco Schroeder. In an interview with Valor Economico, the executive said that this solution is necessary given the limited number of options to reach an agreement with bondholders of Oi, which hold BRL 36 billion of the company's debt securities. Schroeder added that there are no talks with investors or other companies about a possible merger or sale of Oi. Separat

Just In

20 DEC 15:08

Dialog Axiata to offer Starlink satellite service across Sri Lanka

20 DEC 14:51

Sri Lanka raises LKR 10 billion in 5G spectrum auction

20 DEC 14:00

Vi introduces Niyo Zero Forex Markup Card for travelers

20 DEC 13:39

True reshuffles executive team

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.