Brazil judge grants 180-day stay for Oi in record bankruptcy case

© Reuters. The head office of the Brazil’s biggest fixed-line telecoms group Oi, is imagined in Rio de Janeiro

By Brad Haynes SAO PAULO (Reuters) – Shares of Brazilian telecom company Oi SA recuperated on Wednesday after a judge weighing the nation’s biggest-ever bankruptcy filing gave a 180-day stay of additional legal actions while he considered the merits of the case. Oi also got a judgment in the United States where a tribunal authorized its request for Chapter 15 bankruptcy defense, preventing creditors from taking legal action against in that country or foreclosing on U.S. assets. Brazil’s largest fixed-line phone provider and No. 4 mobile operator, together with 6 subsidiaries, filed on Monday for defense from creditors on 65.4 billion reais ($19.3 billion) of bonds, bank debt and running liabilities. Oi’s favored shares leapt 10 percent in early trading, while common shares gained 4 percent, both eliminating nearly half of their Tuesday declines on hopes the company might navigate Brazil’s cumbersome bankruptcy procedure. Rio de Janeiro Judge Fernando Cesar Ferreira Viana gave the immediate remain in a late Tuesday choice, but stated: “It will take a while” to evaluate the merits of the approximately 89,000-page declare bankruptcy defense. If he accepts the petition, Oi will then have 60 days to present a reorganization prepare for the approval of its lenders. Oi’s bankruptcy filing, the equivalent of Chapter 11 in the United States, follows a record variety of companies in Brazil applied for creditor defense in 2015 as the economy plunged into its worst recession considering that the 1930s. Unlike the United States Chapter 11 process, nevertheless, noted Brazilian companies undergoing in-court reorganization continue to trade on the Sao Paulo stock exchange. Brazil’s financial woes have exacerbated Oi’s battle with mounting mobile and broadband competitors, spiraling financial obligation and regulatory concerns on its fixed-line operations after a state-sponsored merger eight years ago. Disclaimer: Blend Media would like to remind you that the data consisted of in this site is not necessarily real-time nor precise. All CFDs (stocks, indexes, futures) and Forex prices are not supplied by exchanges however rather by market makers, and so costs may not be precise and may differ from the actual market price, suggesting prices are indicative and not appropriate for trading purposes. For that reason Fusion Media does n`t bear any obligation for any trading losses you might incur as an outcome of utilizing this data. Blend Media or anybody involved with Combination Media will not accept any liability for loss or damage as a result of dependence on the details including information, quotes, charts and buy/sell signals consisted of within this site. Please be fully notified regarding the dangers and expenses connected with trading the financial markets, it is among the riskiest investment types possible.

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