July 16, 2014 / 6:36 AM / 4 years ago

PT says Rioforte has not paid debt, new terms on merger with Oi

LISBON, July 16 (Reuters) - Portugal Telecom said on Wednesday that Rioforte, a holding company owned by the Espirito Santo family, has not repaid it 847 million euros in commercial paper which has led to new terms of its tie-up with Brazil’s Grupo Oi.

The non-payment has led Portugal Telecom and Brazil’s Grupo Oi to sign a new agreement of their proposed tie-up, which will give PT a smaller stake in their new, joint company, CorpCo.

Portugal Telecom and Oi “remain committed to the full completion of their business combination and have signed a new memorandum of understanding,” PT said in a statement.

“The MOU has been signed following the non-repayment today by Rioforte, a company of the Grupo Espirito Santo, of the 847 euro million matured portion of the outstanding 897 euro million treasury applications subscribed by the PT group,” it said.

Reporting By Axel Bugge, editing by William Hardy

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