Portuguese court recognizes Oi recovery plan

Pharol SGPS SA

26/10/2018 19:59

SAO PAULO, Oct 26 (Reuters) - A Portuguese court approved on
Friday a debt restructuring plan that was passed by creditors in
major Brazilian telecom firm Oi SA  OIBR4.SA , marking a step
forward in the company's tortured bankruptcy recovery process.
    With the court's approval, seen by Reuters, bankruptcy
courts in all relevant jurisdictions - Brazil, the United
States, the Netherlands, and now Portugal - have signed off on
the recovery plan, which was approved by creditors in December. 
    In late July, Oi completed a debt-for-equity swap in which
several hedge funds swapped billions of dollars in debt for
fresh equity in the reorganized firm. The company, Brazil's
largest fixed-line telecom player, expects to receive a 4
billion-real ($1.1 billion) capital injection in early 2019 to
help it boost capital expenditures and shore up its debt
profile.  urn:newsml:reuters.com:*:nL1N1UC1VG
    Oi is not out of the woods yet, however. Earlier in October,
a Brazilian court cleared the way for arbitration talks between
Oi and shareholder Pharol SGPS SA  PHRA.LS  overseen by Brazil's
B3 SA  B3SA3.SA  stock exchange operator.
    Common shares in Oi rose on the news, and were trading up
5.6 percent in afternoon trade. 
    ($1 = 3.64 reais)

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