Brazil's Oi wins ruling in battle with shareholder Pharol

Pharol SGPS SA

14/03/2018 12:51

SAO PAULO, March 14 (Reuters) - A magistrate for Brazil's
Superior Court of Justice has issued an injunction that hands
telecommunications firm Oi SA  OIBR4.SA  at least a temporary
victory over shareholder Pharol SGPS SA  PHRA.LS  in an ongoing
legal dispute, the company said on Wednesday.
    In a securities filing, Oi said that magistrate Marco Buzzi
had "provisionally" awarded jurisdiction in the dispute to a
commercial court in Rio de Janeiro over an arbitration body that
Pharol had appealed to.
    Oi, Brazil's largest fixed line carrier, filed for
bankruptcy in June 2016, triggering an 18-month fight between
and among shareholders, bondholders, regulators, and state
banks.
    In December, creditors approved a plan giving them much of
Oi's equity, and a Brazilian judge approved it in January,
though many shareholders such as Pharol objected.  urn:newsml:reuters.com:*:nL1N1OF277
    Earlier in March, Pharol said it won a partial injunction
from Brazil's Market Arbitration Chamber (CAM) to block Oi from
implementing a debt-for-equity swap outlined in the creditors'
plan. Oi said in response it believed the CAM lacked
jurisdiction, and said it was complying with a plan approved by
the commercial court in Rio.  urn:newsml:reuters.com:*:nL2N1QO0PL
    The Supreme Court decision appears to back up Oi's
interpretation.
    A representative for Pharol did not immediately respond to a
request for comment.
    

 (Reporting by Gram Slattery
Editing by Bernadette Baum)
 ((gram.slattery@thomsonreuters.com; +55-11-5644-7714))