Banks Appeal Oi Bankruptcy, Citing Risks to Recoveries and Services

Overview

• Itaú and Bradesco filed appeals asking for a suspensive effect on the Rio court’s bankruptcy order to preserve Oi’s judicial recovery path.
• The first-instance ruling from the 7th Business Court declared Oi bankrupt and froze proceeds from asset sales conducted during the company’s second restructuring, with a gradual transfer of services foreseen.
• Creditor filings cite roughly R$4 billion in bank exposures via guarantees and estimate Oi’s asset base between about R$20.1 billion and R$50.1 billion.
• Roughly 13,000 workers face delayed pay and legal uncertainty, with priority limited to claims up to 150 minimum wages, and unions seeking emergency meetings with the court-appointed manager and federal ministers.
• V.tal said it deposited in court amounts owed to Serede to ensure they fund labor obligations, as Serede and Tahto remain in distress and are slated for sale.