Brazil's largest fixed line carrier Oi SA on Monday unveiled a debt restructuring proposal, offering to sell assets and proposing a debt-for-equity swap option that could mean a 70 percent haircut for bondholders, Reuters reported today. Oi filed for protection from creditors on June 20 in the country's biggest-ever bankruptcy case, involving 65.4 billion reais ($19.3 billion) in bonds, bank debt and operating liabilities. In a securities filing yesterday, Oi offered four payment options to unsecured creditors such as bondholders owed approximately 34 billion reais. At the same time, the company said it is willing to repay secured creditors such as the Brazil's BNDES development bank in full over the course of 15 years. Brazil's Oi offered to exchange up to 32.3 billion reais ($9.90 billion) in unsecured debt for equity under the plan, which would give lenders up to 85 percent of the company's capital, according to the filings.
