(Adds details of legislation and decree)
By Leonardo Goy
BRASILIA, April 27 The Brazilian government will
introduce legislation granting it the power to intervene when
telecom operators under bankruptcy protection, the head of
telecoms regulator Anatel said on Thursday.
Juarez Quadros said the decision was meant to avoid any
judicial questioning of future interventions, but did not say
when the government planned to submit the legislation.
Since March, the government has promised to enact a decree
to allow authorities to intervene in debt-laden OI SA
. The phone carrier sought court protection from
creditors last June on about 65 billion reais ($21 billion) in
Brazil's biggest-ever bankruptcy filing.
The legislation would allow for government intervention in
telecoms for over a year that could be extended for another
year, Quadros said.
The government is also preparing a decree to facilitate the
recovery of state credit granted to financially weak operators,
Quadros said. The decree would allow carriers to substitute
fines for new investment and pay fines in installments.
(Reporting by Leonardo Goy, writing by Alonso Soto; editing by
Richard Chang and Grant McCool)