BRASILIA (Reuters) - Brazil’s Oi SA (OIBR3.SA) is considering changing a restructuring plan challenged by a group of creditors to offer banks and bondholders part of asset sale proceeds, newspaper O Estado de S.Paulo said on Wednesday.
The current in-court reorganization plan, presented in September, has been criticized by a group of creditors advised by Moelis & Co as favoring shareholders at the expense of bondholders.
The proposed changes are being discussed by Oi’s chief executive Marco Schroeder, investors and creditors, and could be presented by the end of March, Estado said, citing unidentified sources briefed on the talks.
Oi, which is trying to restructure about 65.4 billion reais ($20.4 billion) of debt after filing for Brazil’s largest ever bankruptcy protection in June, did not immediately respond to an emailed request for comment.
Escalating tension among creditors and shareholders of Oi has forced the Brazilian government to threaten a potential intervention in Oi. In an interview published on Tuesday, Communications Minister Gilberto Kassab said the government was ready to intervene in Oi if in-court negotiations fail.
Reporting by Silvio Cascione; Editing by Mark Potter