March 14, 2018 / 12:53 PM / 7 months ago

Brazil's Oi wins ruling in battle with shareholder Pharol

SAO PAULO, March 14 (Reuters) - A magistrate for Brazil’s Superior Court of Justice has issued an injunction that hands telecommunications firm Oi SA at least a temporary victory over shareholder Pharol SGPS SA in an ongoing legal dispute, the company said on Wednesday.

In a securities filing, Oi said that magistrate Marco Buzzi had “provisionally” awarded jurisdiction in the dispute to a commercial court in Rio de Janeiro over an arbitration body that Pharol had appealed to.

Oi, Brazil’s largest fixed line carrier, filed for bankruptcy in June 2016, triggering an 18-month fight between and among shareholders, bondholders, regulators, and state banks.

In December, creditors approved a plan giving them much of Oi’s equity, and a Brazilian judge approved it in January, though many shareholders such as Pharol objected.

Earlier in March, Pharol said it won a partial injunction from Brazil’s Market Arbitration Chamber (CAM) to block Oi from implementing a debt-for-equity swap outlined in the creditors’ plan. Oi said in response it believed the CAM lacked jurisdiction, and said it was complying with a plan approved by the commercial court in Rio.

The Supreme Court decision appears to back up Oi’s interpretation.

A representative for Pharol did not immediately respond to a request for comment.

Reporting by Gram Slattery Editing by Bernadette Baum

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