DEAL: Oi Group completes $20 billion reorganisation

Author: John Crabb | Published: 7 Feb 2019

The Oi Group, the largest telecommunications company in Brazil and Latin America, has successfully completed its $20 billion financial restructuring, marking the end of a complex process that has taken more than three years to complete.

The deal was the largest of its kind in the country, the region and in any emerging market to date, and marks the first RJ (judicial reorganisation) since the in-court judicial reorganisation regime was introduced as part of the Brazilian Bankruptcy Law in 2005.

Holding the deal’s conclusion up were intercreditor issues and complex multicontinental capital structures requiring litigation, as well as wrestling with the corporate makeup of the company for control. On top of this the deal contained a significant fully backstopped rights offering of R$4 billion ($1.08 billion). The rights offering closed late January, marking the successful end of the proceedings.

Although Oi is a Brazilian entity, the restructuring...