Brazil's Oi: BTG sees "huge upside" after latest court decision

Pharol SGPS SA

15/06/2018 18:00

** Analysts at BTG Pactual see "huge upside" for Brazil
telecoms operator Oi SA  OIBR4.SA  after a recent U.S. court
decision
    ** On Thursday, U.S. Bankruptcy Judge Sean Lane overruled
objection from shareholder Pharol SGPS SA  PHRA.LS , a big step
forward in Oi's ongoing debt restructuring 
    ** BTG analysts led by Carlos Sequeira write in note to
clients on Friday that "there are no more legal obstacles for
Oi's restructuring plan to be concluded." A debt-to-equity
conversion plan is scheduled to end July 16
    ** "With Oi's restructuring moving on as planned, the
company's restructured debt will collapse leaving a hefty upside
for equity holders. Even under our more conservative estimates
for the (net present value) of the company's restructured net
debt we see an upside of 71%," they write
    ** Common and preferred shares in Oi both about even in
afternoon trade
    ** Brazil's benchmark Bovespa index  .BVSP  down 2.2 pct
    


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