February 3, 2017 / 2:29 AM / in 6 months

Dutch court declines to put Oi units into bankruptcy proceedings

2 Min Read

SAO PAULO (Reuters) - A court in the Netherlands on Thursday decided that two subsidiaries of debt-laden Brazilian phone carrier Oi SA (OIBR4.SA) would not start bankruptcy proceedings, the company said in a securities filing.

The filing confirmed a Reuters report that Oi Brasil Holdings Coöperatief UA and Portugal Telecom International Finance BV, would remain operating under "suspension of payments" legal status.

Creditors had sought to convert the companies' status from "suspension of payments" to bankruptcy proceedings

Oi's two Dutch subsidiaries issued about 5.8 billion euros (5 billion pounds) of debt, representing most of the company's outstanding bond debt of approximately 8.5 billion euros.

The company did not provide additional details of the court decision, saying it did not have access to a full translation of the Dutch ruling.

Rio de Janeiro-based Oi made Brazil's largest ever bankruptcy filing in June, and is seeking to restructure about 65 billion reais ($20.8 billion) of bond, bank and regulatory liabilities.

($1 = 3.12 reais)

Reporting by Ana Mano; Editing by Cynthia Osterman

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