Creditors of Oi SA began gathering in Rio de Janeiro today to vote on a plan to take the Brazilian telecoms operator out of bankruptcy protection, despite a flurry of legal actions by a key shareholder trying to stop the vote, Reuters reported. By mid-morning, creditors in Latin America’s largest-ever bankruptcy case started trickling into the 22,000-square-meter RioCentro convention center. The company, which spent some 2 million reais ($600,000) on the meeting, had readied the facility twice before, but was forced to break down the temporary infrastructure when court battles and creditor fights delayed previous votes. This time, however, Oi’s management appeared likely to win over enough support from creditors to restructure some 65.4 billion reais in debt after a year and a half of contentious talks. Major bondholders have already expressed support for the plan, which could give them control of the company through a debt-for-equity swap. Still, some creditors such as state development bank BNDES, whose support is required for passage, have been more circumspect.
