SAO PAULO, April 7 Brazilian phone carrier Oi SA
is considering a capital injection while still under
creditor protection, Chief Executive Marco Schroeder told
newspaper Valor Econômico in an interview published on Friday.
Valor cited unnamed people involved in negotiations as
saying the capital increase could total $2 billion to $3
billion. Schroeder declined to comment on specific figures,
according to the report.
An Oi press representative confirmed the contents of
Schroeder's interview with Valor.
The capital injection would provide more firepower in Oi's
operational turnaround and could help advance thorny discussions
between Oi and its creditors after it filed for Brazil's largest
ever bankruptcy protection last year.
Some creditors have openly criticized Oi's proposed debt
restructuring, leading Brazil's government to lay the groundwork
for a direct intervention in the company. Communications
Minister Gilberto Kassab said on Thursday the chances of
intervention are increasing as time passes.
Prominent bondholders and some strategic investors have long
suggested Oi take additional capital, but this is the first time
the carrier's management publicly acknowledges that possibility.
Preferred shares of Oi have advanced 53.8 pct so
far this year as traders hope for a solution to its debt issues.
Common shares rose 42 percent.
(Writing by Bruno Federowski; Editing by Steve Orlofsky)