Egyptian billionaire Naguib Sawiris plans to travel to Brazil within the next two weeks to meet with government officials and convince them that his bid can rescue troubled telecommunications company Oi.
In an interview with the local daily Folha de S. Paulo published on Monday, Sawiris said he believes he can turn the debt laden company around in a year, citing the efforts of his Orascom Group’s 2011 merger with Italy’s Wind mobile operator.
“I don’t have any magic,” he said. “But the company clearly spent money in the wrong places.”
Saddled with $20bn in debt, Oi filed for bankruptcy protection last year. The company has said it met with representatives from US private equity firm Cerberus Capital Management to discuss a possible bid and has also held talks with Elliott Management Corp.
Bondholders rejected Oi’s restructuring proposal in September, saying it favored the controlling shareholders over creditors.
Sawiris has put together a recovery plan with a group of Oi’s creditors. The proposal calls for a $1.25bn capital injection, with Sawiris putting in $250m and the rest coming from a public share sale.
The government is currently one of Oi’s biggest creditors since the company owes money to several state-owned banks and other entities.
Sawiris said he could see Oi, Brazil’s fourth-largest telecoms company, eventually merging with Tim Participações, the country’s No.2 carrier. “But first we are going to rescue Oi,” he said. “Let’s address one issue at a time.”