By Brazil Stock Guide – A Rio de Janeiro state court granted Oi SA a 90-day extension on the suspension of its extraconcursal obligations, providing additional liquidity relief as the telecom operator navigates its court-supervised restructuring.
The ruling was issued in a monocratic decision by appellate judge Mônica Maria Costa of the 1st Private Law Chamber at the Rio de Janeiro Court of Justice. The new suspension period takes effect on Tuesday (20) and follows a request based on a report prepared by the court-appointed judicial management.
Oi SA (OIBR3, OIBR4; ADR: OIBR) said the decision was issued in connection with appeals filed by Itaú Unibanco Holding SA (ITUB4; NYSE: ITUB) and Banco Bradesco SA (BBDC4; NYSE: BBDC). The lenders are challenging the lower-court ruling that converted Oi’s judicial recovery into a continuation with provisional authorization to keep operations running.
That original ruling was handed down by the 7th Corporate Court of Rio de Janeiro and applies not only to Oi but also to its subsidiaries Portugal Telecom International Finance BV and Oi Brasil Holdings Coöperatief.
According to the company, the appellate decision also established that, once the 90-day period expires, the judicial administrator must conclude the management report and submit it to the recovery court without the need for further notification. The report is expected to play a key role in shaping the next procedural steps in the case.
The temporary suspension shields Oi from enforcement of certain post-petition obligations that normally fall outside the scope of judicial recovery, while the court reviews the pending appeals from the creditor banks.
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