Oi say Portuguese judge declines to recognize restructure plan (updated)

Pharol SGPS SA

01/08/2018 16:03

(Adds details on decision, adds context)
    SAO PAULO, Aug 1 (Reuters) - Brazilian telephone carrier Oi
SA  OIBR4.SA  said on Wednesday that a judge in Lisbon had
decided against validating the company's restructuring plan in
Portugal for now, adding that the decision will not keep the
plan from going into effect.
    In a securities filing, Oi said a judge determined that
there are outstanding appeals related to the firm's
restructuring of 65 billion reais ($17.4 billion) in debt that
must be resolved before the Portuguese court signs off on the
plan.
    Oi added that the decision was rooted in formalities, not on
the merits of the restructuring plan, which was approved by the
company's creditors in December. The firm also said it would
appeal the decision.
    "Oi reiterates that the decision does not impact the
solidity or efficacy of the (restructuring) plan, whose
execution was preserved by the bankruptcy judge," the company
said.
    Creditors in Oi, Brazil's largest fixed line carrier,
approved the restructuring plan in December, turning U.S. hedge
funds such as Goldentree Asset Management LP and York Capital
Management Global Advisors LLC into significant shareholders,
and diluting the stake of major Portuguese shareholder Pharol
SGPS SA  PHRA.LS .  urn:newsml:reuters.com:*:nL1N1OF277 urn:newsml:reuters.com:*:nL1N1UC1VG
    The plan has been formally recognized in courts in Brazil
and the United States.
    Common shares in Oi, which have been volatile in recent
years, climbed 4 percent in late morning trade, while preferred
shares were off 0.4 percent.
    ($1 = 3.76 reais)    

 (Reporting by Gram Slattery and Ana Mano;
Editing by Christian Plumb and Alistair Bell)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
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