October 13, 2017 / 2:23 PM / a year ago

Oi's largest creditors reject revamped recovery plan

SAO PAULO, Oct 13 (Reuters) - A group of bondholders and export credit agencies that together are Oi SA’s largest creditors said on Friday that the Brazilian carrier’s revamped restructuring plan aims to protect existing shareholders at the expense of creditors.

In a statement, the steering committees of Oi’s two biggest bondholder groups and the so-called ECAs rejected Oi’s recovery plan presented on Wednesday. They said the company “seems to have spent time negotiating with a small group of conflicted creditors, some or all of whom also hold equity, for a failed deal that focuses exclusively on preserving value for the existing shareholders.”

Oi’s revised restructuring plan proposed by management and approved by the carrier’s board “ignores fundamental creditor concerns, threatens long-term viability of company and abusively enriches existing shareholders,” said the statement. (Reporting by Guillermo Parra-Bernal; Editing by Bernadette Baum)

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