Bradesco () and Itaú Unibanco (), which are Oi’s creditors, appealed against the decree of Financial institutions also demanded that the current telecom operator be replaced by a new manager who resumes the company’s judicial recovery plan, continuing payments to creditors as planned.
The demonstrations obtained first-hand by the Broadcast (Grupo Estado’s real-time news system) are running in the second instance, within the First Chamber of Private Law of the Court of Justice of Rio de Janeiro.
They seek to reform the bankruptcy decree issued by the 7th Business Court of Rio on Monday, the 10th. The pieces were written by the offices SOB Advogados and Machado Meyer.
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Banks have similar arguments. In short, they point out that the bankruptcy of Oi does not represent the most beneficial solution for paying creditors, nor the protection of the parties served by the telecom’s services.
“The collapse of one of the largest economic groups in Latin America, to the detriment of maintaining its judicial recovery, will be potentially more harmful not only to the entire group of creditors, but to the public interest itself and to those who contract its services”, stated Bradesco representatives.
In the petition, they mentioned that Oi maintains relevant contracts for technology and connectivity services not only with Bradesco and Itaú, but also with other large companies such as Caixa, Santander (), Petrobras (;), Axia (formerly Eletrobras – ), Americanas (), Magazine Luiza () and 13 thousand lottery companies, among others, as stated in the report made by the judicial manager.
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They also mention three-digit landline telephone services, which serve important public bodies, such as 193 for the Fire Department, 190 for the Military Police, among others.
“Caution is necessary when declaring the bankruptcy of an economic conglomerate that provides relevant services, has substantial assets and that were part of an organized, enforceable and beneficial payment plan to creditors, as approved by a general meeting of creditors”, amended the lawyers.
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In his assessment, the bankruptcy decree in the first instance did not give any chance to the possibility of a negotiated solution between Oi, the National Telecommunications Agency (Anatel) and the Union to resolve the economic crisis, which, in his assessment, would enable the continuation of its activities. “The first instance court, instead of applying measures aimed at a negotiated solution (…) immediately decided to declare bankruptcy without attempting to adopt measures that could lift the companies under recovery and protect their contractual relationships”, they pointed out.
It is worth remembering, however, that Oi was declared bankrupt by judge Simone Gastesi Chevrand, from the 7th Business Court, after it was found that the company no longer had enough money to maintain its operations, nor was it able to revive its cash flow.
“Despite all attempts and efforts, there is no possibility of balancing the company’s assets and liabilities. There is no minimum financial viability in fulfilling the obligations owed by Oi”, stated the judge in her decision, which was based on a report from the judicial manager.
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Despite this, Bradesco and Itaú requested the granting of a suspensive effect on the declaration of Oi’s bankruptcy until the final judgment.
They also asked for the removal of the current administration of the Oi Group. This role is currently held by lawyer Bruno Rezende, from the Preserva-Ação firm, one of the three who acted as Oi’s judicial administrator, together with the Wald and K2 firms.
Rezende was appointed as manager after the departure of the company’s management and council. To take his place, the banks are asking for a judicial manager “to guarantee the immediate execution of the already approved judicial recovery plan”.
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