Brazil's Oi Starts Talks to Restructure Debts
25 Aprile 2016 - 3:13PM
Dow Jones News
By Rogerio Jelmayer
SAO PAULO--Debt-laden Brazilian telecommunication company Oi SA
is starting talks with certain creditors in order to restructure
its debt.
"Oi has entered into a customary nondisclosure agreement with
Moelis & Company, who acts as adviser for a diverse ad hoc
group of holders of the bonds issued by Oi and certain of its
affiliated companies," Oi said in a statement Monday.
"The company views entry into the nondisclosure agreement with
this bondholder adviser as an initial step toward productive and
expeditious discussions regarding the terms of a potential
restructuring," it added.
In March, Oi hired hired U.S.-based PJT Partners Inc. as a
financial adviser, weeks after a planned capital injection was
called off.
In February, an investment firm's planned $4 billion capital
injection into the Brazilian company fell apart. The plan by
LetterOne, or L1, led by Russian billionaire Mikhail Fridman, had
been contingent on a planned tie-up of Oi and local mobile-phone
company TIM Participacoes SA, which was rejected by the latter
company's parent, Telecom Italia SpA.
LetterOne's planned capital injection had been intended to help
finance the merger deal and also would have helped aided Oi in its
efforts to reduce its debt, according to analysts.
Oi's net debt totaled 38.15 billion reais ($10.8 billion) at the
end of fourth quarter--the most recent figures available--while the
company's earnings before interest, taxes, depreciation and
amortization, or Ebitda, amounted to BRL1.7 billion. More than 80%
of company's debt is denominated in U.S. dollars.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
April 25, 2016 08:58 ET (12:58 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Grafico Azioni TIM (NYSE:TIMB)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni TIM (NYSE:TIMB)
Storico
Da Dic 2023 a Dic 2024
