By Brazil Stock Guide – A Rio de Janeiro court has removed the management and board of Oi SA (OIBR3.SA) and its subsidiaries Serede and Tahto, escalating the telecom operator’s financial crisis.
According to O Globo, Judge Simone Gastesi Chevrand of the 7th Business Court partially advanced the effects of bankruptcy after Oi’s cash position fell to just 21 million reais, while extrajudicial debts stand at about 1.5 billion reais.
Bruno Rezende was appointed as interim president to oversee Oi’s operations, while Tatiana Binato will manage the transition of subsidiaries with equal authority. The court suspended Oi’s extrajudicial obligations for 30 days and blocked any transactions with Íntegra, a company linked to ousted CEO Marcelo Millet.
Judge Chevrand also froze Oi’s stake in NIO (formerly ClientCo) and restricted funds tied to arbitration involving Oi, V.Tal and regulator Anatel. She emphasized the need to safeguard essential telecommunications services, including those supporting Brazil’s Integrated Air Defense and Air Traffic Control Center.
The court granted a 30-day window to decide whether Oi will remain under judicial recovery or face full bankruptcy proceedings.
Leave a Reply