| SAO PAULO
SAO PAULO Nov 24 A newly formed group of
dissident bondholders in Oi SA has retained G5
Evercore to advise it in the Brazilian carrier's in-court
reorganization, which has recently turned more protracted amid
shareholder and bondholder rifts.
In a statement distributed late on Thursday, the
International Bondholder Committee said São Paulo-based G5
Evercore was being asked to find common ground with stakeholders
of the debt-laden Brazilian carrier, which filed in June for the
country's largest-ever bankruptcy.
The International Bondholder Committee was formed on Nov.
11, when most members of a similar group led by Moelis & Co left
to pursue a different strategy for Oi's reorganization. Reuters
reported the same day that New York-based distressed debt fund
Aurelius Capital Management LLC was behind the move.
"We have already reached out to Oi management to engage in
negotiations," said Corrado Varoli, G5 Evercore's chief
executive officer, was quoted by the statement as saying.
The G5 Evercore-led group, which has an undisclosed number
of creditors holding $1.5 billion of the face amount of Oi
bonds, has kept adding more members, the statement said. Most
creditors in the group own bonds issued by Oi's two
Netherlands-based finance subsidiaries - Portugal Telecom
International Finance BV and Oi Brasil Holdings Cooperatif UA.
Varoli, a former head of Goldman Sachs Group Inc in Brazil,
will personally spearhead negotiations for the International
Bondholder Committee, which will also count with law firms
Dechert LLP and Rio de Janeiro-based Sergio Bermudes Advogados
as legal advisers.
People familiar with Oi's 65.4 billion real reorganization
have said the addition of a second creditor group could add
complexity to the carrier's bankruptcy protection case, which
the Brazilian government already has made clear it wants to
influence in a way that ensures the company's survival.
Aside from inter-creditor issues, industry watchdog Anatel
is closely monitoring the carrier, and has warned it could
intervene the carrier if rifts between shareholders and
creditors fail to cease.
The Moelis-led creditor group is currently working with
Egyptian billionaire Naguib Sawiris to present an alternative
reorganization plan for Oi.
(Editing by Bill Trott)