SAO PAULO, March 6 (Reuters) - The board of Brazilian telecommunication company Oi SA has approved the terms of a debt-for-share swap under the company’s reorganization plan, setting 7 reais per share as the value for the capitalization.
The plan will involve issuance of up to 1,756,054,163 shares, corresponding to a maximum amount of 12.292 billion reais ($3.81 billion). Under the deal, unsecured bondholders will be able to participate in the capitalization of Oi by swapping a portion of their debt securities for shares in the company, the filing said.
In January, a Brazilian federal judge gave his blessing to Oi’s reorganization after Brazil’s top fixed-line telephone operator filed for bankruptcy in June 2016.
$1 = 3.2231 reais Reporting by Ana Mano