Oi lenders coming together on new debt-relief proposal
Aug 16 2016, 19:08 ET | About:
Oi S.A. ADR (OIBR) | By:
Jason Aycock, SA News Editor
Creditors accounting for a majority of the debt owed by bankrupt Oi (NYSE:
OIBR) are looking at a
five-year grace period with lower borrowing coststo speed up the carrier's reorganization, Reuters reports.
Bondholders advised by Moelis & Co. and other lenders are talking about alternatives in a more closely knit fashion than before, a source told Reuters.
That's after a minority group led by Nelson Tanure's Société Mondiale -- which has been running a campaign against Oi boardmembers from Pharol -- has pushed a "parallel" plan including a 50% debt reduction along with spin-offs and new investors.
"The parties are working closely and jointly in order to accelerate Oi's in-court reorganization plan and thwart any unconstructive proposal that could potentially generate noise in the process," the source said in likely reference to Société's plans.