Rio Justice Confirms Bankruptcy of Telecommunications Company Oi
2 sources · Brazil
Who reported this
- UOL
- Folha de S.Paulo
What the colours mean
- Left
- Centre-left
- Centre
- Centre-right
- Right
- A hatched block means the outlet is affiliated with, or controlled by, a state.
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Every source for this story reports from Brazil.
The Justice of Rio confirmed the bankruptcy of the former telecommunications giant Oi on August 25. This decision follows two separate judicial recovery processes. The first process began in 2016 and ended in December 2022, with the company reporting debts of approximately R$ 65 billion. A second request for recovery was filed in March 2023, at which point debts were approximately R$ 44 billion.
During these processes, Oi sold its mobile operation, its pay TV unit, and the control of its fiber infrastructure. While these sales provided cash to pay some creditors, the company failed to achieve operational autonomy. In July, judicial management reported that projected cash availability for the end of the month dropped from R$ 88.1 million to R$ 19.6 million, warning that operations could become unsustainable starting in August.
The situation highlights a broader trend in Brazil, where high interest rates have led to a record number of companies entering judicial recovery. Analysts suggest that judicial recovery should be used to reorganize viable businesses rather than simply delaying bankruptcy while consuming assets.
How each side framed it
- Centre-left
- The outlet framed the bankruptcy as a failure of the judicial recovery process to provide a genuine cure for a non viable business.
- Centre
- The outlet framed the bankruptcy as a failure of the judicial recovery process to provide a genuine cure for a non viable business.
Sources
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