Portuguese Court Recognizes Oi Recovery Plan

A Portuguese court approved on Friday a debt restructuring plan that was passed by creditors in major Brazilian telecom firm Oi SA, marking a step forward in the company’s tortured bankruptcy recovery process, Reuters reported. With the court’s approval, seen by Reuters, bankruptcy courts in all relevant jurisdictions - Brazil, the United States, the Netherlands, and now Portugal - have signed off on the recovery plan, which was approved by creditors in December. In late July, Oi completed a debt-for-equity swap in which several hedge funds swapped billions of dollars in debt for fresh equity in the reorganized firm. The company, Brazil’s largest fixed-line telecom player, expects to receive a 4 billion-real ($1.1 billion) capital injection in early 2019 to help it boost capital expenditures and shore up its debt profile. Oi is not out of the woods yet, however. Read more