Brazil's Oi SA, a telecommunications company that recently filed the largest bankruptcy in the country's history, is seeking court protection in the U.S. to shield its assets from an affiliate of hedge fund Aurelius Capital Management LP, one of its holdout bondholders, Dow Jones Newswires reported yesterday. Oi and several affiliates sought chapter 15 protection on Tuesday with a debt load of $19 billion. A day earlier, the troubled telecom firm filed for the equivalent of chapter 11 in Brazil after an out-of-court restructuring proposal collapsed. If a judge approves Oi's chapter 15 request, the company would receive the benefits of U.S. bankruptcy law, which halt lawsuits and block creditors from seizing assets while it focuses on restructuring at home. Oi has dollar-denominated bonds and says many of its contracts and licenses, including those concerning undersea cables and satellite services, are governed by U.S. law.
