(Adds details in paragraphs 3-12)
By Ana Mano
SAO PAULO Feb 10 A group of bondholders in Oi
SA appealed on Friday a ruling by a Dutch court that
refused to declare insolvent two subsidiaries in the
Netherlands, the latest setback in a protracted legal battle to
solve Brazil's largest bankruptcy case on record.
In an emailed statement, the International Bondholder
Committee group said it "remains committed to finding a
consensual solution" to restructure the debt of the two Oi
The International Bondholder Committee holds more than $2
billion of bonds issued by the two Dutch companies and other
members of the Oi group. The units have outstanding debt of
about $6.2 billion.
Oi declined to comment.
The appeal underscores the dissenting agendas of different
creditor groups participating in Oi's restructuring, and how
their disagreements are hampering the process.
Oi's common and preferred shares both rose about 1.6 percent
in late afternoon trade, to 3.8 reais and 3.2 reais
In December, a separate group of Oi bondholders advised by
Moelis & Co proposed injecting $1.25 billion of new
capital into Oi, a move that would give them immediate control
of the carrier through a debt-for-equity swap. Backed by
Egyptian billionaire Naguib Sawiris, the plan is part of a
binding offer presented to Oi after the Moelis group considered
the carrier's own reorganization proposal "unacceptable" for
imposing a 70 percent haircut on the bond debt.
"The restructuring should treat similarly situated creditors
equally," the International Bondholder Group said, adding that
if there is a proven need to raise new capital, all creditors
should be invited to take part "on a fair and equitable basis."
Moelis did not have an immediate comment regarding the
strategy of the group, which was formed in November by
dissenting investors including Aurelius Capital Management LP,
Attestor Capital LLC, Citadel LLP and York Capital Management.
Rio de Janeiro-based Oi made Brazil's largest ever
bankruptcy filing in June to restructure about 65 billion reais
($20.9 billion) of bond, bank and regulatory liabilities.
A stay of execution, which protects Oi from creditor suits,
will expire in May, said a source close to bondholders who is
not allowed to talk in public.
A Cerberus Capital Management LP-led group of investors also
intends to present an alternative in-court restructuring
proposal for Oi carrier by March.
Paul Singer's Elliott Management Corp unveiled plan for Oi
involving a 9 billion reais capital injection last month.
($1 = 3.1111 reais)
(Reporting by Ana Mano; Editing by Cynthia Osterman)