China Development Bank to approve restructuring plan for Brazilian group Oi

17 October 2017

The China Development Bank is expected to sign a document on Tuesday that supports the restructuring plan presented by Brazilian telecoms group Oi, the Bloomberg news agency reported.

Sources quoted by the agency said the Chinese bank has been discussing with judicial authorities how it could recover a US$1.2 billion loan it granted to the Oi group, about six months before the operator went into the biggest ever receivership process in Latin America.

Last September, the Brazilian press reported that China Mobile, the world’s largest mobile operator with 874 million customers, had been negotiating with the National Telecommunications Agency (Anatel) the possible purchase of Brazilian telecoms operator Oi.

At the end of 2016, Oi, the largest telecommunications company in Brazil, had a portfolio of 63.6 million customers, of which 39.9 million in mobile telephony, 16.4 million in fixed telephony, Internet access and subscriptions, 6.6 million users in the corporate segment and 700,000 public telephones.

On 20 June, 2016, Oi filed a request for receivership, the largest in Brazil’s history, with a liability of 65 billion reais (US$20.7 billion). (macauhub)