Oi (OiBR3): Under financial pressure, Telecom proposes changes in the judicial recovery plan

THE Hi Group (Oibr3) faces difficulties in its second judicial recoverystarted in 2023. The Telecommunications Company reported on Tuesday (2) an amendment (that is, extension) of the process departure plan.

Continues after advertising

Continues after advertising

The group’s proposal – which includes the Hi sa, Portugal Telecom International Finance BV and Hi brazil holdings cooperatief ua – intends to reduce immediate costs after the new direction is faced “with the frustration of some of the regulatory, financial and marketing premises adopted by the former management”.

An addition is nothing more than the addition of something, in this case, to make legal changes to the company’s plan. According to the document, Oi has three objectives, the first being the restructuring of the payment terms of labor creditors and certain chirographers (Class I and III) to ensure the adequacy between the cash generation of the Oi Group and the payment flow of these creditors.

Added to this, the company seeks to reduce the Oi Group’s liability to increase the availability of immediate resources to maintain the company’s activities and ensure a financial breath so that the new management can adapt the capital structure according to the company’s financial reality after the implementation of various restructuring measures.

The amendment proposal will pass the GENERATION OF CREDITORS ASSEMBLY, on an uninformed date, and must be approved by the judicial recovery court. This way you can undergo adjustments.

Continues after advertising

Continues after advertising

Financial Pressure at Oi

The current management criticized, among other measures, the sale of UPI Clientco, that through non -pecuniary financial counterparts, in the amount of R $ 5.7 billiondid not result in the immediate entry of net revenues provided for the contribution in reducing debt.

“The Oi group has been working to address their debt, reduce their costs and reshape their business strategy, especially for the decommissioning of activities related to the old concession regime and the direction of their operations to new markets for high growth potential.”

The current judicial recovery plan took almost a year to be created and approved, which occurred in May 2024, due to the complexity of restructuring. With him, Oi provides for a reduction of up to 75% of its financial debt.

*With Reuters