Oi Creditors Get Pushback From Aurelius on New Restructuring

  • Moelis reaches out to additional lenders for broader support
  • Aurelius says creditors group misunderstands who’s senior
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Aurelius Capital Management, a dissident bondholder in Oi SA, is trying to foil a fresh $19 billion debt restructuring proposed by the bankrupt telecom company’s biggest creditors.

The hedge fund is pushing back against a group of about 70 creditors advised by Moelis & Co., which is seeking a wider array of stakeholders to support its plan after a previous effort collapsed earlier this year. The dispute revolves around bonds issued by Oi’s subsidiaries, particularly Telemar Norte Leste SA, which provides telecom services in states including Rio de Janeiro.