Oi Files for Brazil Record $19 Billion Bankruptcy Protection
- Major creditors include BNDES, Caixa Economica, Itau
- Regulator Anatel says company needs consent to sell assets
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Oi SA filed for bankruptcy protection on 65 billion reais ($19 billion) in debt -- a Brazilian record -- after failing to reach an agreement with creditors, the last straw following a long saga of mergers and leadership changes.
Brazil’s fourth-biggest wireless company sought protection from creditors so it could keep serving customers, the company said in a filing Monday. Talks with creditors stalled last week after some board members disagreed with a plan by bondholders to swap debt for equity, giving them 95 percent of the company.