Brazil's Oi files for bankruptcy

Brazilian telecommunications company Oi filed for bankruptcy protection June 20. The filing is the largest in Brazil's history, press reports state.

The company says it is R$65.4 billion ($19.3 billion) in debt. The filing comes 10 days after CEO Bayard Gontijo stepped down when he failed to get internal support for his debt-reduction strategy, according to press reports.

Oi is Brazil's fourth-largest mobile services provider. It has six subsidiaries: Oi Móvel, Telemar Norte Leste, Copart 4 Participações, Copart 5 Participações, Portugal Telecom International Finance, and Oi Brasil Holdings Coöperatief. The company has embarked on several infrastructure expansion and upgrade projects against a backdrop of economic recession in Brazil (see, for example, "Oi taps Alcatel-Lucent for broadband upgrade, OTN projects").

The company has promised to maintain services during its restructuring.

For related articles, visit the Business Topic Center.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer's Guide.