SAO PAULO, Aug 31 (Reuters) - Rio de Janeiro prosecutors have asked the court supervising Oi SA’s bankruptcy proceedings to suspend a shareholders meeting scheduled for Sept. 8 to give the Brazilian phone carrier time to negotiate with a minority investor.
The purpose of the meeting is to decide on changes to Oi’s board as proposed by activist minority investor Société Mondiale, according to a statement on Wednesday.
Aside from replacing all of the board members appointed by majority Oi shareholder Pharol, Société Mondiale proposed a lawsuit against current and former managers of the company for alleged losses imposed on the carrier as a result of their actions, according to court filings.
Prosecutor Márcio Souza Guimarães said before any shareholder action can be taken, there should be “mediation” between the dissenting parties, according to the statement.
The prosecutor’s petition was submitted on Tuesday to the Rio De Janeiro court overseeing proceedings.
“Conciliation and mediation are compatible with bankruptcy, out-of-court, and insolvency proceedings as well as cases involving companies with high indebtedness,” the prosecutor said in the statement.
Non-voting shares in Oi were up 6.58 percent at 2.59 reais, bringing year-to-date gains to almost 33 percent.
If the judge grants the prosecutor’s request, this could be the first time mediation proceedings take place in the context of a bankruptcy proceeding, the statement said. (Reporting by Ana Mano; Editing by Lisa Von Ahn)