Oi’s Chapter 11 Plan Faces Hurdles From BTG-Backed Supplier

Oi SA’s pursuit of a Chapter 11 filing has hit a snag in US bankruptcy court, leaving the Brazilian phone carrier unable to free up collateral to pursue immediate financing for its unpaid bills.

A supplier backed by funds managed by Banco BTG Pactual SA has challenged Oi’s ability to seek Chapter 11, arguing that Brazilian law prohibits a company from seeking court protection from creditors more than once in a five-year period. Oi filed for a so-called judicial recovery, the Brazilian equivalent of Chapter 11, in a Rio de Janeiro court in March 2023.

An Oi retail store in Rio de Janeiro in 2023.

Photographer: Maria Magdalena Arrellaga/Bloomberg

The legal debate ...