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UPDATE 1-Brazil intervention in Oi group no longer imminent -regulator
October 26, 2017 / 11:18 PM / 25 days ago

UPDATE 1-Brazil intervention in Oi group no longer imminent -regulator

(Recasts with regulator saying intervention no longer imminent)

BRASILIA, Oct 26 (Reuters) - The risk of a government intervention in bankrupt telephone group Oi SA has subsided after shareholders gave assurances they would not change its current managers, Brazil’s telecoms regulator Anatel said on Thursday.

“Intervention is no longer imminent,” Anatel chief Juarez Quadros told reporters. He said shareholders had sent the company emails assuring its managers that “at no time” had they or the board of director considered replacing them.

Brazil’s Solicitor General Grace Mendonça also said intervention of the debt-laden carrier was the last thing it had in mind.

She said authorities were working to avoid an intervention and a list of alternative restructuring proposals for saving the company is being drawn up by a government task force.

Oi bondholders rejected the company’s restructuring plan presented earlier this month and a judge overseeing the bankruptcy protection proceedings agreed to a request by creditors to reschedule an assembly for November.

The postponement allows time to reconcile competing restructuring proposals more than a year into Brazil’s biggest-ever in-court reorganization.

Oi’s liabilities include some 11 billion reais ($3.5 billion) in fines and interest owed to Anatel, and debts to public banks such as Banco do Brasil SA BBAS3.SA and development bank BNDES, who have a say in the restructuring of the carrier.

Reporting by Leonardo Goy; Editing by Leslie Adler and Richard Chang

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