| SAO PAULO
SAO PAULO Brazilian telephone company Oi SA (OIBR4.SA) said on Monday that a court in Holland approved a "suspension of payments" procedure for subsidiary Portugal Telecom International Finance B.V., according to a regulatory filing.
The suspension of payments procedure, in practice, protects PTIF from creditors seeking to collect unpaid debt, giving Oi's subsidiary time to restructure its financial obligations, the filing said.
Oi made the largest bankruptcy protection filing in Brazil's history in June as it tried to renegotiate 65.4 billion reais($20.40 billion) of bank, bond and regulatory liabilities.
On Aug. 9, a Dutch court placed Oi's other Netherlands-based unit, Oi Brasil Holdings Coöperatief UA, under protection from creditors.
Oi's two Holland-based subsidiaries issued about $6.7 billion in bonds, which the company is now trying to restructure.
On Sept. 5, Oi made a debt reduction proposal that included a 70 percent haircut on the principal amount of its unsecured debt, including its bond obligations. In a statement, a group of bondholders rejected the offer.
(Reporting by Ana Mano; Editing by Daniel Flynn)