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Oi files for creditor protection and prepares for a second bankruptcy proceeding.

Lawyers for the operator argue that the company's capital structure remains unsustainable.

Oi is preparing for bankruptcy protection (Photo: Vera Magalhães and Lilia Schwarcz)

247 - The operator Oi filed a request for creditor protection in court on Wednesday (1st) in preparation for a second judicial reorganization, in a measure similar to that of Americans, reports the newspaper Valor Econômico

The company was unable to reach a final agreement to restructure its debts of millions of reais related to financial obligations.

“Despite the unquestionable success of the first judicial reorganization, which, through a change in its strategic plan of operation, with a new focus on fiber optic services and including the transfer of part of its business to other investors, allowed for a substantial reduction in its total debt, the company's capital structure remains unsustainable. Approximately R$ 29 billion is in financial debt alone,” argue Oi's lawyers, referring to the company's first judicial reorganization process, which lasted almost six and a half years and ended in December 2022.

“The non-payment of more than R$ 600 million due on February 5, 2023, including more than US$ 82 million owed in interest to bondholders, would result in the early maturity of almost all of the aforementioned financial debt, due to the early and cross-maturity clauses stipulated in their financial contracts,” Oi's lawyers explain in the request. 

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