Elliott Management, the hedge fund led by billionaire Paul Singer, is preparing a new investment proposal for Brazilian telecommunications company Oi, according to a source familiar with the situation.
Elliott and Oi, Brazil’s fourth-largest telecoms company, held talks last year about a possible investment but a deal was never reached.
Egyptian billionaire Naguib Sawiris has also publicly expressed interest in making a bid to revive the troubled telecom, which filed for bankruptcy protection last year. Sawiris told a Brazilian newspaper on Monday he plans to travel to Brazil in the next two weeks to discuss his plans to rescue the company with government officials.
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 source would not comment on when Elliott plans to present the proposal or its details.
The company has said it also met with representatives from US private equity firm Cerberus Capital Management about a possible restructuring plan, which has divided the company’s debt holders and shareholders.
Bondholders rejected Oi’s restructuring proposal in September, saying it favored the controlling shareholders over creditors.