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80% of Oi’s share capital could transfer to creditors

23 May 2023

As much as 80% of the share capital of financially stricken Brazilian telco Oi could transfer to its creditors as part of its reorganisation process, legal documents have revealed. TeleSintese explains that the proposal provides for an increase in the company’s share capital, with a dilution of the stakes held by Oi’s current shareholders. Current partners may exercise pre-emptive rights, however.

It should be noted that there are other repayment options on the table, and the selected proposal needs to be accepted by the creditors and approved by the 7th Corporate Court of the Judicial District of the Capital of the State of Rio de Janeiro.

TeleGeography notes that Oi’s latest request for judicial reorganisation was approved by its board of directors on Friday 19 May. The telco’s original judicial recovery period drew to a close on 14 December 2022, after around six-and-a-half years. It is understood that Oi currently has BRL29 billion (USD5.5 billion) worth of debts and total liabilities of BRL43.7 billion.

Brazil, Oi

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