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Highlights of Credit and Finance

Brazil’s Oi States Dutch Systems May Enter Personal Bankruptcy Proceedings

SAO PAULO Brazilian phone carrier Oi SA said on Tuesday that Dutch judicial authorities could oblige personal bankruptcy proceedings for its 2 Netherlands-based units, which hold many of the companys bond debt.Oi said in a securities filing that it hoped that a bankruptcy procedure in the Netherlands, must it take locationoccur, would have no meaningful bearing by itself bankruptcy court procedures in Brazil.Should the Dutch units go into bankruptcy proceedings, Oi stated in a securities filing that it hoped that would have no significant bearing by itself bankruptcy court process in Brazil.Oi, Brazils No.

4 cordless provider, last June sought Brazilian court defense for 65.4 billion reais($19 billion )in obligations, of which about 34 billion( $10 billion) is in bonds.About 25 billion reais($7.35 billion )of the bonds are held by the two Dutch entities- Oi Brasil Holdings Co peratief UA and Portugal Telecom International Financing BV(PTIF), inning accordance with company information. Presently, the Dutch systems have suspension of payments legal standing– which safeguards a business from creditors and provides it time to reorganize.Dutch judicial administrators might need the conversion of two suspension of payments treatments … into bankruptcy processes, Ois security filing stated. If bankruptcy is declared, the possessions of a company might be liquidated to repay financial institutions, according

to Rotterdam, Netherlands-based law firm LVH-Advocaten. The price on PTIFs 5 percent note due in November 2019 rose 2 cents on the dollar to 27 cents, the most significant intraday gain given that mid-June. Rio de Janeiro-based Oi did not specify what conditions would lead the 2 Dutch systems to go into the personal bankruptcy treatment. Nevertheless, Tuesdays filing noted that the prospective insolvency of the units in the Netherlands does not impact operational activities or Ois money position in Brazil. Nevertheless, the business said it hoped that possibility in the Netherlands does not lead to considerable impactseffect on the insolvency procedure day by day on the business in Brazil.In the filing, Oi likewise stated it will beginbegin to settle claims in Brazil worth up to 50,000 reais, aiming to helpto assist small lenders get paid back.

Reuters reported on Nov. 3 the business objective to pay back small-sized products ahead of financial lenders.(Reporting by Ana Mano; Editing by Guillermo Parra-Bernal and W Simon)

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