Brazil's Oi Focused on Creditors Meeting, Not on New Investors

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Debt-laden Brazilian telecoms provider Oi SA could benefit from a third-party capital injection, but the company should focus on talks between creditors and shareholders before engaging new strategic investors, its chief executive said. In a Monday interview regarding third-quarter results, CEO Marco Schroeder said he thought it was “extremely important” that a long-delayed creditors meeting be held on Dec. 7 even if creditors and shareholders had not reached an agreement, Reuters reported. In the results, Oi reported a net profit of 8 million reais ($2 million) in the third quarter, compared with a net loss of 1.214 billion reais a year earlier, as a stronger currency reduced the burden of its dollar-denominated debts. Oi, Brazil’s fourth largest carrier, filed for Latin America’s largest ever bankruptcy protection process last year to restructure 65 billion reais in debt. Many firms without a significant stake in the carrier have proposed injecting capital into Oi in return for equity, with TPG Capital Management LP and state-run China Telecom Corp Ltd being the latest to do so. Read more.