Brazil
News

Oi files for judicial protection 3 months after exiting 6-year reorganization

Bnamericas
Oi files for judicial protection 3 months after exiting 6-year reorganization

Brazilian telecom operator Oi has filed an expected second request for judicial protection, just three months after emerging from a similar six-year process.

The troubled Brazilian carrier stated in its request, which was filed on “urgent basis” in the evening of March 1, that it has 47.3bn reais (US$9.06bn) in financial debts. 

When it first filed for bankruptcy protection in June 2016, Oi’s debt was in excess of 65bn reais, making its protection case the second largest in the country's history.

By September 2022, following asset sales, divestments and cost-cutting measures, its net debt had fallen to 18.3bn reais, with gross debt of 21.9bn reais, according to information in the company’s earnings report.

The new request follows a call for urgent injunctive relief filed last month with the same corporate court responsible for overseeing its first bankruptcy protection case.

Oi argues that the new protection request was necessary, among other things, because the date on which the effects of that urgent injunctive relief come to an end is approaching. 

The telco also cites the economic-financial scenario in which it finds itself, with overdue debts and potential default and cross-default of financial contracts, and the need to maintain legal protection against potential foreclosures by creditors and other measures against the company and its subsidiaries.

Oi claimed to be confident that it will secure court approval for the new request.

“The company reaffirms it will continue to maintain its activities regularly, acquiring new customers, operating and maintaining its networks and services, serving its customer base, continuing its search for efficiency and optimization of its operations, always striving to avoid any losses, discontinuities or impact to the provision of its services,” it said.

Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: ICT

Get critical information about thousands of ICT projects in Latin America: what stages they're in, capex, related companies, contacts and more.

Other companies in: ICT (Brazil)

Get critical information about thousands of ICT companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: DPR Telecomunicações Ltda.  (DPR)
  • The description contained in this profile is taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been machine tran...
  • Company: Universo Online S.A.  (Grupo UOL)
  • The description contained in this profile is taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been machine tran...
  • Company: AUTPRO Elétrica e Automação Ltda.  (AUTPRO)
  • The description contained in this profile is taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been machine tran...
  • Company: Kyndryl Brasil
  • The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...