Oi secures participation in BRL 150 million bids – 02/09/2023 – Market

Judge Fernando Cesar Ferreira Viana, from the 7th Business Court of Rio de Janeiro, granted this Thursday (9) an injunction to allow the operator Oi to continue participating in its bidding processes. The company faces financial difficulties and is considering filing for bankruptcy for the second time.

Together, the bidding processes add up to R$ 150 million in contracts. They are carried out by Petrobras, Saeb (Secretary of Administration of the State of Bahia), Banco do Brasil, Goiana Housing Agency, Public Defender of the State of Acre and ESPMG (School of Public Health of the State of Minas Gerais).

Lawyer Gabriel de Britto Silva, specialized in business and consumer law, says that the law governing judicial reorganizations allows companies undergoing restructuring to participate in bids, even if negative certificates are not presented.

“The criterion of proving the economic and financial situation imposed in the bidding documents strictly through the ‘shareholders’ equity’ criterion is shown to be unreasonable and is in conflict with the recovery law”, he says.

In the lawyer’s assessment, the importance of these bids for Oi’s operation also weighed in the decision, so that making access to these bids unfeasible would mean closing a source of revenue.

The operator left the judicial recovery process in December 2022, but last week had to seek protection against the blocking of assets by creditors.

Therefore, there is expectation of a second request for judicial recovery of the company. On Wednesday (8), the operator also asked for protection against creditors in the New York court.

The company has a list of at least 14 creditors, with which the debt reaches BRL 29.75 billion. The value has been updated until December 31, 2022.

The largest portion of the debt, equivalent to R$ 9 billion, is with the Bank of New York Mellon. Next comes the trustee GDC Partners. The credit is of almost R$ 8.3 billion.

Then come Wilmington Trust, from London, whose credits add up to almost BRL 5.4 billion, China Development Bank (BRL 3.8 billion) and Itaú BBA (BRL 2 billion).

Fundação Atlântico de Seguridade Social (BRL 948.1 million), a closed supplementary pension entity sponsored by Oi, Banco do Nordeste (BRL 156.4 million), Banco da Amazônia (BRL 100 million), Bradesco (BRL 34 .4 million) and Banco ABC Brasil (R$ 2.5 million) are also on the company’s list of creditors.

Santander (R$ 2.3 million), BNP Paribas Brasil (R$ 675.5 thousand), Banco Fibra (R$ 29 thousand) and Banco Modal (R$ 24.8 thousand) complete the list with amounts receivable.