Oi has said it will “carefully analyze” an alternative restructuring plan “in due course” and also consider suggestions from other creditors.
Bondholders represented by Moelis & Co, together with Egypt’s Orascom TMT Investments, presented a plan last week that included swapping BRL24.8bn ($7.33bn) in outstanding bonds for a 95% equity stake in the Brazilian telecommunications company. The plan also called for BRL37bn in investments in five years.
Orascom will contribute $250m to a $1.25bn capital increase as part of the proposal, with the rest coming from a public share offering. Existing shareholders can buy up to 50% of the offering and retail investors can buy up to 10%.
Oi CFO Ricardo Malavazi Martins said the company met with creditors and will likely present a revised recovery plan in Q1 2017.
The Brazilian telecom asked creditors to take a cut up to 70% in September as part of a plan to get out of BRL65.4bn in debt. The group of bondholders represented by Moelis rejected the proposal, saying it favored shareholders over other creditors.