It’s been a long six years, but finally the Hey managed to get out of judicial recovery🇧🇷 Judge Fernando Viana, from the 7th Business Court of Rio de Janeiro, decreed the end of the process and stated that all obligations assumed by the operator in the restructuring plan were fulfilled.
With debts that exceeded R$ 65.9 billion and more than 65 thousand creditors, the Oi’s judicial recovery process it became the biggest in the history of Brazil — the Odebrecht Group won the podium in 2019, with debts of R$ 98 billion.
With a presence in 5,570 Brazilian municipalities, Oi is (or was) the only fixed operator present in several cities in the interior of the country. With networks acquired in the privatization of state telecoms, a possible bankruptcy of Oi would cause impacts throughout Brazil — even for customers of other companies, who often depend on Oi for some type of traffic.
“The most impactful and relevant judicial process of the Brazilian judiciary comes to an end, with capillarity throughout the national territory and in the various sectors of civil society, with repercussions not only in the Brazilian jurisdiction, but also in foreign jurisdiction.”
Judge Fernando Viana, from the 7th Business Court of Rio de Janeiro
Despite the end of the judicial reorganization, Oi still has debts. In September, the operator accumulated debts of R$ 21.9 billion. During the judicial reorganization plan, several creditors had their debt converted into equity.
Sale of Oi Móvel and focus on fiber marks Oi’s recovery
The exit from the judicial reorganization was possible after Oi put into practice its recovery plan, approved in 2017. Since then, the telecom has gone through strategic changes that dictated the direction of the company.
Among the main highlights, Oi focused on fiber optic internet and sold the mobile telephony operation to Claro, TIM and Vivo🇧🇷 In addition, the operator bet on the separation of fiber assets, creating the neutral company V.tal whose control was sold to a BTG Pactual bank fund.
Oi’s restructuring also resulted in the sale of other assets, such as towers, datacenters and its TV customer base for Sky🇧🇷 This was also reflected in the workforce cut: in 2020, the operator announced a voluntary layoff plan to reduce 15% of the staff; new cuts happened again in 2021with 11% of employees leaving.
https://tecnoblog.net/noticias/2022/12/15/oi-encerra-recuperacao-judicial-apos-venda-da-oi-movel-e-foco-na-fibra-optica/