SAO PAULO, March 14 (Reuters) - A magistrate for Brazil’s Superior Court of Justice has issued an injunction that hands telecommunications firm Oi SA at least a temporary victory over shareholder Pharol SGPS SA in an ongoing legal dispute, the company said on Wednesday.
In a securities filing, Oi said that magistrate Marco Buzzi had “provisionally” awarded jurisdiction in the dispute to a commercial court in Rio de Janeiro over an arbitration body that Pharol had appealed to.
Oi, Brazil’s largest fixed line carrier, filed for bankruptcy in June 2016, triggering an 18-month fight between and among shareholders, bondholders, regulators, and state banks.
In December, creditors approved a plan giving them much of Oi’s equity, and a Brazilian judge approved it in January, though many shareholders such as Pharol objected.
Earlier in March, Pharol said it won a partial injunction from Brazil’s Market Arbitration Chamber (CAM) to block Oi from implementing a debt-for-equity swap outlined in the creditors’ plan. Oi said in response it believed the CAM lacked jurisdiction, and said it was complying with a plan approved by the commercial court in Rio.
The Supreme Court decision appears to back up Oi’s interpretation.
A representative for Pharol did not immediately respond to a request for comment.
Reporting by Gram Slattery Editing by Bernadette Baum