Rio Appeals Court Halts Oi Bankruptcy, Keeps Case in Judicial Reorganization

Overview

• O Rio de Janeiro appeals judge Mônica Maria da Costa suspended the effects of Oi’s bankruptcy and ordered the reorganization to continue with an orderly asset liquidation.
• The decision restores the judicial administrators and, according to the report, calls for an inquiry into Pimco’s responsibility in the case.
• The suspension follows the 7th Business Court order by Judge Simone Gastesi Chevrand that had converted Oi’s second restructuring into bankruptcy and froze proceeds from asset disposals.
• V.tal, along with creditors Itaú Unibanco and Bradesco, filed appeals contesting the lower-court order, arguing it undermined court-approved transactions and legal certainty.
• The lower-court measures included blocking about R$170 million in payments V.tal says are extraconcursal for services provided to Oi.