Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
The Biggest Bankruptcy Filing in Brazilian History Filed by Oi SA
Author: Joel R. Glucksman
Date: August 18, 2016
Key Contacts
Back
Oi SA responsible for Brazil’s largest bankruptcy filing
Recently, Oi SA, one of the largest telecom companies in Brazil, announced that it had filed for bankruptcy protection. According to Bloomberg, the company’s announcement was reported worldwide because it is the biggest bankruptcy filing in the country’s history. The report found the company’s top fixed line phone carrier was not able to restructure its $19.3 billion debt load.
Oi SA falls into debt
In court documents, the company claimed that it would not be able to make its July payments on its debt due to a harsh recession. According to Reuters, Oi SA cited almost a decade’s worth of economic downturn in Brazil, growing competition in the mobile space and a failed merger for its decision to seek bankruptcy protection.
Negotiations with some of the company’s bondholders broke down over reorganizing $14.72 billion in debt due to stakeholder unrest in a newly reformed organization after the bankruptcy process. Bloomberg reported that their shares would be reduced because a large portion would be transferred to bondholders.
The company’s debt reorganization plan
As part of Oi SA’s restructuring process, the company has opened negotiations with Bratel BV, its majority shareholder with a 22.24 percent stake, according to The Wall Street Journal. It also plans to reach an agreement with some of its senior bondholders, including Pacific Investment Management Co., Citadel LLC and Wellington Management Co., who hold roughly 40 percent of the company’s debt.
The plan is for Oi SA to enter into a debt-for-equity swap with its bondholders to refinance operations and generate cash flow next year. In the meantime, Oi SA will maintain operations and plans to emerge from the bankruptcy process as a viable telecommunications business.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.