Brazil's Oi appoints Teles as acting CEO - filing (updated)

Pharol SGPS SA

25/11/2017 01:42

(Recasts to reflect appointment of new CEO) 
    By Tatiana Bautzer, Gram Slattery and Daniel Alvarenga 
    SAO PAULO/LISBON, Nov 24 (Reuters) - Brazilian telephone 
carrier Oi SA  OIBR4.SA , which is operating under bankruptcy 
court protection, appointed Eurico de Jesus Teles Neto as acting 
chief executive after Marco Schroeder resigned from the post on 
Friday, the company said in a securities filing. 
    Teles Neto will also serve as legal director until the board 
deliberates on a permanent replacement, the filing said. 
 urn:newsml:reuters.com:*:nE6N1L0026 
    Schroeder left at a crucial phase in Latin America's 
biggest-ever bankruptcy proceedings, after fissures deepened 
between the company's management and board, run by shareholders 
aligned with distressed debt tycoon Nelson Tanure. Schroeder in 
recent months has urged shareholders and creditors to make 
concessions, while the board has stuck to a restructuring 
proposal rejected by major bondholder groups.  urn:newsml:reuters.com:*:nL2N1N71LS  
    A spokeswoman for Portugal's Pharol SGPS SA  PHRA.LS , which 
owns about 27.5 percent of Oi's voting shares and is part of a 
controlling shareholder bloc, said earlier on Friday it had been 
informed of Schroeder's decision to step down. 
    Common shares in Oi  OIBR3.SA  extended losses to close 4 
percent lower after Reuters, citing three sources with knowledge 
of the situation, reported Schroeder had tendered his 
resignation Friday afternoon.   
    Oi is two weeks away from a crucial creditor vote on a 
proposal to restructure 65 billion reais ($20 billion) of debt, 
with the fate of the nation's largest fixed-line phone operator 
at stake and more than 100,000 jobs on the line.  urn:newsml:reuters.com:*:nL1N1NR02U 
    In October, telecoms regulator Anatel threatened to 
intervene in the carrier if it changed management.  urn:newsml:reuters.com:*:nL2N1N12XP 
    However, a government source said on Friday Schroeder's 
departure did not make intervention more likely. The person, who 
requested anonymity due to the sensitivity of the issue, said 
that talks to bring the debt-laden carrier out of bankruptcy 
protection will continue under new management. 
    Any restructuring plan approved by management must still be 
approved by the regulator before being presented in bankruptcy 
court, the person added.  
    ($1 = 3.23 reais) 
 
 (Reporting by Tatiana Bautzer and Gram Slattery in Sao Paulo, 
Daniel Alvarenga in Lisbon; Additional reporting by Leonardo Goy 
in Brasilia and Ana Mano in São Paulo; Editing by Cynthia 
Osterman and Richard Chang) 
 ((gram.slattery@thomsonreuters.com;)(+55 11 5644 7714)) 
 
Keywords: OI SA RESTRUCTURING/