Loyens & Loeff

Loyens & Loeff acted as Dutch counsel to Oi S.A. in USD 20 billion debt restructuring

European law firm Loyens & Loeff has advised Brazilian telecom company Oi in its restructuring of more than USD 20 billion debt, the largest-ever debt restructuring in Latin America. Headquartered in Rio de Janeiro, Oi operates a vital telecommunications business, providing telecom services to some 63 million customers and employing over 143,000 direct and indirect employees.

Loyens & Loeff acted as Dutch counsel to Oi, next to U.S. law firm White & Case and Brazilian law firm BMA (Barbosa, Müssnich, Aragão). Loyens & Loeff advised Oi on questions of Dutch law in relation to various judicial insolvency proceedings, particularly in Brazil, the United Kingdom, the United States, Portugal and the Cayman Islands. In the Netherlands, Loyens & Loeff advised and represented Oi in relation to judicial insolvency proceedings concerning Oi’s financing companies and in a number of (creditor) litigations. Loyens & Loeff played a key role in coordinating these insolvency proceedings and litigations.

The restructuring process took several years. Following intense negotiations among debt and equity stakeholders, Oi’s restructuring plan received overwhelming support from the creditors during a successful creditor’s meeting in December 2017. In June 2018, two composition plans offered in the Dutch judicial insolvency proceedings of Oi’s financing companies were approved by creditors and ratified by the Amsterdam District Court. These plans materially ‘mirror’ Oi’s restructuring plan and will give effect to the restructuring plan internationally.

The Loyens & Loeff team consisted of a broad group of partners and (senior) associates, among others Vincent Vroom and Loek Kerstens (restructuring), Sidney Berendsen and Huib Schrama (litigation), Martijn Schoonewille (capital markets), Lilian Welling-Steffens (Banking & Finance), Jeroen Janssen and Michiel Schul (international tax services) and Freek Hilberdink (deputy notary corporate/M&A).

For advice on similar matters please contact the team members.