Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
The Biggest Bankruptcy Filing in Brazilian History Filed by Oi SA
Author: Joel R. Glucksman
Date: August 18, 2016
Key Contacts
Back
Oi SA responsible for Brazil’s largest bankruptcy filing
Recently, Oi SA, one of the largest telecom companies in Brazil, announced that it had filed for bankruptcy protection. According to Bloomberg, the company’s announcement was reported worldwide because it is the biggest bankruptcy filing in the country’s history. The report found the company’s top fixed line phone carrier was not able to restructure its $19.3 billion debt load.
Oi SA falls into debt
In court documents, the company claimed that it would not be able to make its July payments on its debt due to a harsh recession. According to Reuters, Oi SA cited almost a decade’s worth of economic downturn in Brazil, growing competition in the mobile space and a failed merger for its decision to seek bankruptcy protection.
Negotiations with some of the company’s bondholders broke down over reorganizing $14.72 billion in debt due to stakeholder unrest in a newly reformed organization after the bankruptcy process. Bloomberg reported that their shares would be reduced because a large portion would be transferred to bondholders.
The company’s debt reorganization plan
As part of Oi SA’s restructuring process, the company has opened negotiations with Bratel BV, its majority shareholder with a 22.24 percent stake, according to The Wall Street Journal. It also plans to reach an agreement with some of its senior bondholders, including Pacific Investment Management Co., Citadel LLC and Wellington Management Co., who hold roughly 40 percent of the company’s debt.
The plan is for Oi SA to enter into a debt-for-equity swap with its bondholders to refinance operations and generate cash flow next year. In the meantime, Oi SA will maintain operations and plans to emerge from the bankruptcy process as a viable telecommunications business.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
- Practices: Bankruptcy & Creditors' Rights
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
The Biggest Bankruptcy Filing in Brazilian History Filed by Oi SA
Author: Joel R. Glucksman
Oi SA responsible for Brazil’s largest bankruptcy filing
Recently, Oi SA, one of the largest telecom companies in Brazil, announced that it had filed for bankruptcy protection. According to Bloomberg, the company’s announcement was reported worldwide because it is the biggest bankruptcy filing in the country’s history. The report found the company’s top fixed line phone carrier was not able to restructure its $19.3 billion debt load.
Oi SA falls into debt
In court documents, the company claimed that it would not be able to make its July payments on its debt due to a harsh recession. According to Reuters, Oi SA cited almost a decade’s worth of economic downturn in Brazil, growing competition in the mobile space and a failed merger for its decision to seek bankruptcy protection.
Negotiations with some of the company’s bondholders broke down over reorganizing $14.72 billion in debt due to stakeholder unrest in a newly reformed organization after the bankruptcy process. Bloomberg reported that their shares would be reduced because a large portion would be transferred to bondholders.
The company’s debt reorganization plan
As part of Oi SA’s restructuring process, the company has opened negotiations with Bratel BV, its majority shareholder with a 22.24 percent stake, according to The Wall Street Journal. It also plans to reach an agreement with some of its senior bondholders, including Pacific Investment Management Co., Citadel LLC and Wellington Management Co., who hold roughly 40 percent of the company’s debt.
The plan is for Oi SA to enter into a debt-for-equity swap with its bondholders to refinance operations and generate cash flow next year. In the meantime, Oi SA will maintain operations and plans to emerge from the bankruptcy process as a viable telecommunications business.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.