(Adds details on proposal, background)
SAO PAULO Dec 9 A group of creditors of
Brazil's struggling phone operator Oi SA, including
export credit insurers and banks, plans to present to the
company in the next two weeks a new restructuring proposal.
The group, represented by FTI Consulting Canada ULC,
Milbank, Tweed, Hadley & McCloy LLP, Mattos Filho, Veiga Filho,
Marrey Jr. and Quiroga Advogados, said in a statement that it is
in talks with the Sawiris Group and bondholders represented by
Moelis & Co for an alternative restructuring plan for Oi.
Oi, Brazil's forth largest wireless carrier, went into
bankruptcy protection last June. Its 65.4 billion-real ($19.2
billion) case is the largest ever in Brazil.
The company presented in September a reorganization proposal
that was badly received by creditors, who said it favored
shareholders at their expense.
The group of creditors working on the new plan, which
includes China Development Bank Corporation, said the
Sawiris Group could be a potential strategic investor in Oi as a
result of the new proposal.
Oi's Chief Executive Officer Marco Schroeder said this week
that management plans to meet major creditor groups and
potential bidders as early as next week in a bid to accelerate
efforts to help the company emerge from the bankruptcy
Schroeder said Oi's main shareholders and management are
"more open" to scrapping a proposed three-year restriction on
creditors swapping part of their debt for equity, which Oi
included in the September proposal.
Brazil's government has threatened to intervene in the case
if the rift between the company, its shareholders and creditors
(Reporting by Aluisio Alves and Marcelo Teixeira; editing by
Lisa Shumaker, Bernard Orr)