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.

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.

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