Oi Bondholder Groups Oppose New Terms For Restructuring Plan Announced By Oi S.A.

NEW YORK, March 24, 2017 /PRNewswire/ -- The Steering Committees of the International Bondholder Committee and of the Ad Hoc Group of Oi Bondholders (together, the "Oi Bondholder Groups") announced today their opposition to the revised indicative terms for an amended restructuring plan (the "Proposed Terms") released by Oi S.A. ("Oi" or the "Company" and, together with its subsidiaries, the "Oi Group") on March 22, 2017. 

After having carefully reviewed the Company's release, the Oi Bondholder Groups are strongly opposed to the Proposed Terms.  The Proposed Terms, like the September proposal, fail to treat creditors fairly and equitably, while advancing the interests of its existing equity holders, to the detriment of all other stakeholders.

The Proposed Terms were not previously negotiated with either of the Oi Bondholder Groups.  The Oi Bondholder Groups are extremely disappointed that nine months after the filing for judicial reorganization, the Oi Group has continually failed to engage in negotiations with the Oi Bondholder Groups.

FTI Consulting ("FTI"), the financial advisor to the ad-hoc group of export credit agencies, facility agencies and banks represented by FTI (the "FTI Group¹"), stated that the "FTI Group also finds the Proposed Terms unacceptable and unduly favorable to the existing equity holders. Our clients are very disappointed that the Oi Group failed to engage in negotiations before releasing the Proposed Terms."

The Oi Group's management and board of directors continue to ignore the best interests of the Oi Group, by, among other things, failing to propose plans that can be supported by their creditors.

The Oi Bondholder Groups and the FTI Group jointly represent over US$6.0 billion of debt issued by various members of the Oi Group.

The International Bondholder Committee holds more than $2.2 billion of bonds issued by Oi Brasil Holdings Coöperatief U.A., Portugal Telecom International Finance B.V. and other members of the Oi Group.  The Ad Hoc Group of Oi Bondholders holds more than $3.0 billion of bonds issued by various members of the Oi Group.  The FTI Group holds more than $950 million of claims against various members of the Oi Group. The International Bondholder Committee, the Ad Hoc Group of Oi Bondholders, and the FTI Group do not assume any fiduciary or other duties.

¹The "FTI Group" for the purpose of this press release excludes China Development Bank.

SOURCE International Bondholder Committee