The legal recovery plan presented by the board of Brazilian telecommunications group Oi includes the sale of shares previously held by Portugal Telecom in Angola, Cabo Verde (Cape Verde) and Timor-Leste (East Timor), the Portuguese press reported.
The plan was approved by the board of Oi, but has yet to be approved by the judge responsible for bankruptcy proceedings and to be negotiated with creditors as it involves a debt of 65.4 billion reais (US$20.4 billion).
The Oi group “inherited” the assets of Portugal’s Pharol (formerly Portugal Telecom SGPS) under a merger that proved to be complex due to investments of over 900 million euros in commercial papers of the failed Banco Espírito Santo bank and which was originally supposed to create the CorpCo group.
The plan submitted by Oi, in which Pharol has a 27% stake, includes the sale of assets owned by PT Investments in telecommunications operators in Angola, Cabo Verde and Timor-Leste as well as in Brazil, alongside restructuring of its high levels of debt.
In Cabo Verde, for example, the Brazilian group currently holds a 40% stake in Cabo Verde Telecom. (macauhub/AO/BR/CV/PT/TL)