August 16, 2019 / 12:31 PM / a month ago

Brazil's government considers intervention in Oi -report

SAO PAULO, Aug 16 (Reuters) - The Brazilian government is considering intervention in telecommunications carrier Oi SA , as the company struggles to recover since it filed for bankruptcy protection in June 2016, newspaper O Estado de S. Paulo reported on Friday.

Brazilian telecoms regulator Anatel fears an interruption of Oi services next year, Estado reported, without saying how it obtained the information.

Oi declined to comment on the matter and Anatel did not immediately respond to a Reuters request for comments.

On Wednesday, Oi posted a second-quarter net loss of 1.5 billion reais ($390 million), 24% larger than a year earlier, as debt servicing costs rose and the real weakened against the dollar. Still, the company was able to raise its capital expenditures by 50% in the second quarter to 2 billion reais.

In July, Oi disclosed a strategic plan aiming to divest up to $2 billion in non-core assets and invest in fiber-to-home (FTTH) broadband service, considered the heart of the company’s strategy.

$1 = 3.9809 reais Reporting by Carolina Mandl; Editing by Steve Orlofsky

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