Oi exits bankruptcy after six years
Brazilian operator Oi SA has exited bankruptcy protection after six years, causing its shares to soar by as much as 53%.
The company filed for bankruptcy in June 2016 after it said it had run out of time to reorganise its operations and restructure its multibillion-dollar debt as a harsh recession took hold in the country.
Oi says it has managed to repay a US$871 million debt it had with state development bank BNDES as well as some other loans, meaning the bankruptcy proceedings can now come to an end.
In April Oi sold its mobile assets to TIM Brasil, along with Telefonica Brasil and Claro for around US$1.5 billion.
This was done as it looked to spin off four business units from its main operations as part of its ongoing bankruptcy protection proceedings.
Overall, the company has managed to raise US$5 billion in sales.
Oi still has over US$4 billion left in debt but its creditors can now legally request repayments after the end of bankruptcy proceedings.