LISBON, July 16 (Reuters) - Brazilian telecommunications company Oi said on Wednesday 847 million euros in unpaid debt held by its merger partner Portugal Telecom (PT) has a grace period of seven business days for its issuer Rioforte to make the payment.
PT has been forced to take a cut in its share of the merger with Brazil’s Grupo Oi OIRB3.SA after Rioforte - a holding company of the Espirito Santo family, failed to repay the commercial paper. PT said it will take legal action to recover the money.
“The unpaid commercial paper establishes a cure period of seven business days for Rioforte to make such payment. On July 17, 2014, additional commercial paper of Rio Forte in the amount of 50 million euros will mature, which is also subject to the same cure period,” Oi said in a statement released in Portugal by PT. (Reporting By Andrei Khalip)