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...