January 10, 2018 |
A Rio de Janeiro-based court has approved a debt restructuring plan from Oi and its creditors, putting into play a change in terms of governance and a debt-to-equity swap for the Brazilian telecom.
According to a securities filing from Oi, the restructuring will inject roughly BRL4bn ($1.2bn) in new capital into the company. The agreement, however, will see existing shareholders dilute a portion of its share capital in Oi and gradually hand over control of the company to its creditors.
Brazilian telecom gets the green light from a Rio-based judge to change governance and apply a debt-to-equity conversion