Brazil Telecoms Regulator Rejects Oi Shareholder Petition

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Brazil’s telecommunications regulator Anatel said it rejected a petition by Societe Mondiale, a shareholder in Oi SA, to stop Aurelius Capital Management inking a debt restructuring accord with the struggling Brazilian telecoms company, Reuters reported. The regulator said in a statement on Tuesday, however, that it would open an administrative inquiry to examine claims levied by Societe Mondiale, an investment vehicle of distressed debt tycoon Nelson Tanure, regarding Aurelius’ holdings in the nation’s telecoms sector. “It’s very welcome given that it opens an investigation into conflicts of interest with regards to Aurelius and its position as a controller of Nextel,” a spokesman for Societe Mondiale said. Last week, Societe Mondiale, which controls Oi’s board through alliances, asked Anatel to prohibit the management of Oi, which is currently in bankruptcy protection, from signing a contract or engaging in debt negotiations that would imply a transfer of control to Aurelius allies. Read more.