Stricken Brazilian telecoms giant Oi has confirmed that it has received a letter from Orascom TMT Investments (OTMTI), the Luxembourg-based holding company owned by Egyptian tycoon Naguib Sawiris, requesting that the telco ‘extend the validity of its suggestions for an alternative judicial reorganisation plan’ until 31 March 2017. However, Oi notes that it continues to meet regularly with other creditors, stakeholders and potential investors, ‘with the intent of gathering impressions, comments and suggestions for the improvement of the judicial reorganisation plan’.
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 services to its customers. As outlined earlier this year, an initial Orascom-backed proposal would see Sawiris invest US250 million in Oi, while a further USD1 billion would be raised by a public share sale.