Stricken Brazilian telecoms group Oi confirmed on Monday 19 December that it has met with Egyptian businessman Naguib Sawiris to discuss a recovery plan. Sawiris was joined by creditors Moelis and FTI Consulting, and together they have proposed an alternative debt restructuring plan, the ‘notice to the market’ confirmed. The Oi statement read: ‘The company and its wholly owned subsidiaries will carefully analyse the suggestions of such group of creditors in due course, along with other suggestions that emerge during meetings with other creditors of the company.’
According to a Wall Street Journal report late last week, the proposal would see Sawiris, majority shareholder of Orascom Telecom Media and Technology Holding (OTMTH), invest US250 million in Oi, while a further USD1 billion would be raised by a public share sale.
As previously reported by TeleGeography’s CommsUpdate, Oi filed the largest bankruptcy request in Brazil’s history in June 2016, after failing to reach an agreement with creditors. The filing, which covered Oi and six subsidiaries, listed BRL65.4 billion (USD19.2 billion) of debt and the company chose judicial reorganisation to preserve the value of its holdings and to continue providing service to its customers.