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.
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
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
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.