November 22, 2017 / 8:00 PM / a year ago

Oi board says fees to creditors will only be paid upon capital raise

SAO PAULO, Nov 22 (Reuters) - The board of Brazilian telecoms company Oi SA has approved a proposed restructuring plan in which fees it pays to creditors in return for a capital injection will not be paid beforehand, the company said in a statement on Wednesday.

Brazilian telecoms regulator Anatel had previously criticized the structure of a capital raise proposed by the board, in which fees would be paid before the actual capital injection occurred, sources with knowledge of the matter said.

The board also approved a plan modifying the structure of the proposed capital injection. The amount raised from creditors could be as high as 5.5 billion reais ($1.7 billion), and if shareholders agree to join the capital raise, the total amount could reach up to 8 billion reais.

$1 = 3.2226 reais Reporting by Gram Slattery; Editing by Susan Thomas

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