Bulletin: Oi S.A. Receives Approval From Credit Holders For Its Amended Reorganization Plan

SAO PAULO (S&P Global Ratings) Sept. 10, 2020--Brazil-based telecom operator Oi S.A. (global scale: CC/Negative/--; national scale: brCC/Negative/--) announced on September 9 that the majority of its credit holders approved the amendment to its judicial reorganization plan (JRP) that includes a discount on debt prepayment for some of its debtholders. We would be assessing this amendment as a de facto restructuring, equivalent to a selective default. According to the amendment, debt owed to banks and export credit agencies will be prepaid with a 55% discount following asset sales that are expected to be completed during the next few years. However, our ratings on the company currently remain unchanged because the judge still needs to approve the amended JRP. We expect

...September 10, 2020 SAO PAULO (S&P Global Ratings) Sept. 10, 2020--Brazil-based telecom operator Oi S.A. (global scale: ##/Negative/--; national scale: brCC/Negative/--) announced on September 9 that the majority of its credit holders approved the amendment to its judicial reorganization plan (JRP) that includes a discount on debt prepayment for some of its debtholders. We would be assessing this amendment as a de facto restructuring, equivalent to a selective default. According to the amendment, debt owed to banks and export credit agencies will be prepaid with a 55% discount following asset sales that are expected to be completed during the next few years. However, our ratings on the company currently remain unchanged because the judge still needs to approve the amended JRP. We expect this to occur over the next months when will then revise our ratings....

Bulletin