NEW YORK, March 24, 2017 /PRNewswire/ -- The Steering
Committees of the International Bondholder Committee and of the Ad
Hoc Group of Oi Bondholders (together, the "Oi Bondholder
Groups") announced today their opposition to the revised indicative
terms for an amended restructuring plan (the "Proposed Terms")
released by Oi S.A. ("Oi" or the "Company" and, together with its
subsidiaries, the "Oi Group") on March
22, 2017.
After having carefully reviewed the Company's release, the Oi
Bondholder Groups are strongly opposed to the Proposed Terms.
The Proposed Terms, like the September proposal, fail to treat
creditors fairly and equitably, while advancing the interests of
its existing equity holders, to the detriment of all other
stakeholders.
The Proposed Terms were not previously negotiated with either of
the Oi Bondholder Groups. The Oi Bondholder Groups are
extremely disappointed that nine months after the filing for
judicial reorganization, the Oi Group has continually failed to
engage in negotiations with the Oi Bondholder Groups.
FTI Consulting ("FTI"), the financial advisor to the ad-hoc
group of export credit agencies, facility agencies and banks
represented by FTI (the "FTI Group1"), stated that the
"FTI Group also finds the Proposed Terms unacceptable and unduly
favorable to the existing equity holders. Our clients are very
disappointed that the Oi Group failed to engage in negotiations
before releasing the Proposed Terms."
The Oi Group's management and board of directors continue to
ignore the best interests of the Oi Group, by, among other things,
failing to propose plans that can be supported by their
creditors.
The Oi Bondholder Groups and the FTI Group jointly represent
over US$6.0 billion of debt issued by
various members of the Oi Group.
The International Bondholder Committee holds more than
$2.2 billion of bonds issued by Oi
Brasil Holdings Coöperatief U.A., Portugal Telecom International
Finance B.V. and other members of the Oi Group. The Ad Hoc
Group of Oi Bondholders holds more than $3.0
billion of bonds issued by various members of the Oi
Group. The FTI Group holds more than $950 million of claims against various members of
the Oi Group. The International Bondholder Committee, the Ad Hoc
Group of Oi Bondholders, and the FTI Group do not assume any
fiduciary or other duties.
1The "FTI Group" for the purpose of this press
release excludes China Development Bank.
Media Relations
Contact:
|
International
Bondholder Committee Brunswick Group
Victoria
Ford
Thomas
Kamm
Tereza
Kaneta
Tel: +55 11 3076
7620
E- mail:
oibondholders@brunswickgroup.com
|
Ad Hoc Group of Oi
Bondholders
CDN
Comunicação
Juliana
Giancolli
juliana.giancolli@cdn.com.br
+ 55 (11)
3643-2948
Nelson
Rocco
nelson.rocco@cdn.com.br
+55 (11)
3643-2806
|
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SOURCE International Bondholder Committee