With debts of R $ 65.4 billion (US $ 20.13 billion), telephone operator Oi will have a representative of the National Telecommunications Agency (Anatel) in its board meetings, what will allow Anatel to close monitor measures related to Oi’s judicial recovery plan.
Anatel has approved has already adopted the precautionary measure of requesting previous information of any proposals, preventing the operator from signing an agreement before the agency’s previous knowledge.
According to Anatel’s chairman, Juarez Quadros, the Agency needs to know beforehand the terms such proposals to ensure it will not affect the continuity of service provision and the guarantee of rights of workers and consumers.
Despite Anatel’s future participation into board meetings, Quadros denied that the measure meant intervention. “The agency representative does not have veto and decision-making power, nor does the [Anatel’s] board of Directors. It will only bring enough information to keep up with the company’s routine, “he said.
Approved by a majority of Oi’s board of Directors last Saturday (Nov.4), the proposal for judicial reorganization depends only of the approval of creditors and shareholders, in a meeting scheduled to be held on Friday (Nov.10)
Proponents of the biggest request for judicial recovery in Brazil’s history, Oi faces difficulties to reach an agreement between creditors and shareholders to renegotiate the multibillion dollar debt. The creditors proposed the conversion of debts into shares, which would make them become owners of a large chunk of the company. The current shareholders, however, do not want to reduce their stake in the company.