13 June 2018

De Brauw advises on largest debt restructuring in Latin America

De Brauw has advised Portugal Telecom International Finance B.V. (PTIF), one of the key financing vehicles of Oi S.A., on its international restructuring. The restructuring of more than USD 20 billion of debt is the largest-ever debt restructuring in Latin America.

 

The Oi group is one of the world’s largest integrated telecommunications service providers and a critical source of telecom services throughout Brazil. As part of its global restructuring, cross-border insolvency proceedings were opened in Brazil, the United States, the United Kingdom, the Cayman Islands, Portugal and the Netherlands. The Dutch part of the financial restructuring related to bond debt restructuring for a total value of approximately EUR 6 billion. PTIF had issued more than EUR 4 billion of bond debt. The Dutch composition plans were based on a Brazilian Judicial Reorganization Plan (RJ Plan) and effectively mirrored the terms of the RJ Plan. On 1 June 2018, the Dutch compositions plan of PTIF and Oi Brasil Holdings Coöperatief U.A., the Dutch financing vehicles of the Oi group, were approved by an overwhelming majority of their creditors. On 11 June 2018, the District Court of Amsterdam confirmed the Dutch composition plans.

De Brauw team: Reinout Vriesendorp (lead partner), Omar Salah, Charissa Veldman and Rosalie Stoter