January 9, 2019 / 12:01 PM / 7 days ago

Brazil's Oi and Pharol subsidiary agree to end legal disputes

FILE PHOTO: The logo of Brazilian telecoms company Oi SA is pictured inside a store in Sao Paulo, Brazil July 18, 2018. REUTERS/Paulo Whitaker

SAO PAULO (Reuters) - Brazilian telecom group Oi SA (OIBR4.SA) has agreed to end all legal with a subsidiary of shareholder Pharol SGPS SA (PHRA.LS), the company said on Wednesday, paving the way for its long-awaited operating turnaround.

The agreement covers all litigation against the parties in Brazil, Portugal and other jurisdictions, Oi said in a securities filing.

Oi, which in December of 2017 received creditors’ consent to restructure about 65 billion reais ($17.51 billion) of debt, said it will pay 25 million euros to Pharol as part of the settlement in exchange for 33.8 million Oi shares held by the company.

The agreement also foresees that Pharol participates in the carrier’s capitalization efforts under the company’s reorganization plan, investing at least 25 million euros, the filing said.

Reporting by Ana Mano; editing by Jason Neely

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