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Brazil's Oi mulls increasing size of capital plan, paper reports
September 27, 2017 / 12:04 PM / in a month

Brazil's Oi mulls increasing size of capital plan, paper reports

SAO PAULO (Reuters) - Management at Oi SA (OIBR4.SA) will propose that the board of the debt-laden Brazilian phone carrier increase a planned capital injection to 9 billion reais ($2.8 billion) in an effort to emerge from bankruptcy protection faster, O Estado de S. Paulo reported on Wednesday.

FILE PHOTO -- The logo of Brazil's largest fixed-line telecoms group Oi is seen inside a shop in Sao Paulo October 2, 2013. REUTERS/Nacho Doce/File Photo

Minority shareholder Nelson Tanure, who holds a 6.5 percent voting stake through the Société Mondiale fund, has convinced a group of six investment firms to inject additional capital in Oi, Estado reported, without identifying its sources. The initial plan was for 8 billion reais.

Solus Alternative Asset Management LLC, Centerbridge Partners LLC and Silver Point Capital LLC are among the funds, according to Estado. Management will present the new plan later on Wednesday, Estado reported.

Oi did not comment, while efforts to contact the funds were unsuccessful.

Oi’s in-court reorganization, which remains Brazil’s largest bankruptcy protection case to date, has been marked by a series of disputes between creditors and shareholders over the fate of Brazil’s No. 4 wireless carrier.

($1 = 3.1670 reais)

Reporting by Bruno Federowski; Editing by Jeffrey Benkoe

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