Judge OKs Oi restructuring, says shareholders meeting not needed

Pharol SGPS SA

08/01/2018 17:48

SAO PAULO, Jan 8 (Reuters) - The judge overseeing the 
restructuring process of Brazilian telecom company Oi SA 
 OIBR4.SA  approved a massive debt restructuring plan on Monday 
and called a proposed shareholders meeting "absolutely 
unnecessary." 
    In the decision, Judge Fernando Viana gave the official 
go-ahead to Latin America's largest ever in-court debt 
reorganization. On Dec. 20, a majority of Oi creditors approved 
a plan to restructure 65 billion reais ($20.1 billion) of debt, 
putting an end to a year and a half of negotiations. 
 urn:newsml:reuters.com:*:nL1N1OJ0JL 
    The plan upset major shareholders, however, as it hands up 
to 75 percent of the company to creditors that include 
distressed debt funds, such as Aurelius Capital Management, and 
severely dilutes equity.  urn:newsml:reuters.com:*:nL1N1OF277 
    Earlier on Monday, Bratel Brasil SA, a subsidiary of Oi 
investor Pharol SPGS SA  PHRA.LS , said it was calling for a 
general shareholders meeting on Feb. 7 and that it believed the 
restructuring process had violated company statutes. 
    Viana, however, said such a meeting could add uncertainty to 
the restructuring. 
    "The convocation of the general shareholders meeting is 
absolutely unnecessary to validate the creditors' sovereign 
decision," he wrote.  
    "On the contrary, a convocation of shareholders ... would 
again bring about the instability that was strongly rejected by 
the judiciary throughout this whole judicial recuperation 
process." 
    A Pharol representative did not have an immediate comment 
about the judge's decision. 
    ($1 = 3.23 reais) 
 
 (Reporting by Gram Slattery; Editing by Lisa Von Ahn) 
 ((gram.slattery@thomsonreuters.com; +55 11 5644 7714)) 
 
Keywords: OI SA RESTRUCTURING/