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UPDATE 1-Brazil plans law to intervene in troubled telecoms -regulator
April 27, 2017 / 11:09 PM / in 6 months

UPDATE 1-Brazil plans law to intervene in troubled telecoms -regulator

(Adds details of legislation and decree)

By Leonardo Goy

BRASILIA, April 27 (Reuters) - 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)

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