Oi's new judicial recovery plan is approved

This is a machine translation of Oi's press release

Rio de Janeiro, April 19, 2024 - Oi's new Judicial Recovery Plan was approved yesterday by the company's creditors, at a meeting held in Rio. The new plan, approved by 79.87% of unsecured creditors, provides for restructuring of the company's financial debts, adapting them to its payment capacity, without compromising its operational performance and also its business in the fiber optic segment.

The plan foresees the entry of new money, better conditions for creditors who will file appeals, the sale of company assets to pay creditors with priority for debt settlement and the provision of guarantees to ensure payment of creditors. The main objectives are to reduce debt, guarantee short and medium term liquidity; and improving the capital structure.

According to Oi's legal director, Thalles Paixão, who presented the new plan during the meeting, the financing conditions were not substantially changed in this latest round of discussions with creditors, but they brought improvements. The result of extensive negotiations held between the company and its stakeholders in recent months, the plan foresees an inflow of resources of U＄655 million.

A bridge loan (in the form of DIP) of US$135.8 million is also planned for short-term financing. “The central point of the plan is to guarantee liquidity to maintain the company’s operations,” he stated.

Guarantees for creditors include the sale of Oi's stake in V.tal, the Oi Fibra business unit, real estate, among others. The plan also provides for the capitalization of remaining credits of up to 80% of Oi's share capital, for creditors who contribute resources to the company.

The total amount of new debt issued by the company will be R＄6.75 billion divided into two tranches, one of R＄4.5 billion and the second of R＄2.5 billion.

Even facing a second Judicial Recovery, Oi ended 2023 leading the way in activating new fiber optic internet access at high speeds, among the country's major operators. The company also maintained the pace of its B2B operation, Oi Soluções, with significant results acting as an ICT player using the existing customer base. In December, Oi Fibra and Oi Soluções accounted for 70% of the new Oi's revenue (without the legacy).

The new Oi is focused on fiber optic connectivity and digital services for residential, business and corporate users with a focus on the client-centric model. Structurally, the company is formed by Oi SA, focused on B2C, SME; Oi Soluções, the connectivity and IT solutions arm for B2B; V.tal, with a relevant shareholding, operating in the wholesale market; and by two companies, Serede and Tahto, which are 100% subsidiaries of Oi and represent two important elements in the company's transformation process.