Portuguese court rejects recognition of Oi's recovery plan.

(Reuters)- The telecommunications operator Oi said on Wednesday that the Portuguese courts rejected its request for recognition of the company's judicial recovery plan and that it will appeal the decision.

According to a statement sent to the market, Oi said that the judge of the Lisbon District Court understood that the final judgment of the Brazilian court's decision approving the recovery plan earlier this year would be necessary to recognize the agreement. The judge did not rule on the merits of the plan, Oi said.

"Oi respectfully disagrees with the decision of the Portuguese court and clarifies that it intends to file the appropriate appeal," the company said, adding that the plan has already been recognized by courts in the United States and the Netherlands.

Oi also stated that the Portuguese decision does not "impact the soundness and full effectiveness of the plan, whose execution was safeguarded by the bankruptcy court."