By Brazil Stock Guide – Bradesco (BBDC4) and Itaú Unibanco (ITUB4) filed appeals to the Rio de Janeiro state court seeking to suspend the bankruptcy ruling issued against Oi (OIBR3) on Monday (10). The move was first reported by Valor Econômico, which detailed the escalating efforts by major creditors to prevent the liquidation of one of Brazil’s largest telecom operators.
In its appeal submitted on Tuesday (11), Bradesco said the lower-court judge failed to properly weigh the public interest and the company’s social function before declaring bankruptcy. The bank also requested the removal of Oi’s management and the appointment of a court-supervised administrator “with support from professionals of his confidence to execute the previously approved reorganization plan.”
Bradesco’s lawyers argue the judge disregarded alternatives proposed by state prosecutors, stating that she “instead of applying measures aimed at a negotiated solution as proposed by the Public Prosecutor’s Office of Rio de Janeiro, as previously determined in first and second instance decisions, opted to declare the bankruptcy of one of the country’s largest economic groups without attempting measures that could revive the company and safeguard its contractual relations.”
Itaú Unibanco filed a similar motion the same day, contesting the conversion of Oi’s judicial recovery into bankruptcy and asserting that the company still had pathways for restructuring under supervision.
The ruling followed earlier interventions by Judge Simone Gastesi Chevrand, who in October had removed Oi’s board and suspended post-petition financial obligations for 30 days before deciding whether the company should continue in recovery or be liquidated.
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