Oi says that the judicial recovery did not affect operations; Anatel files lawsuit against TV

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After the National Telecommunications Agency (Anatel) filed a lawsuit against Oi (OIBR3;OIBR4), the telephone company published a statement in which it affirms that there is no reason for such a measure and that its new judicial recovery request did not impact operations.

The process was initiated by Anatel on the 8th, to assess whether Oi has the economic conditions to maintain the concession. It can, in extreme cases, result in the termination of the company’s fixed telephony concession.

The red light came on in the regulatory body due to the size of Oi’s debt (R$ 43.7 billion), in addition to the worsening of the service indicators provided by the operator, with an increase in customer complaints.

The opening of the expiration process of Oi’s fixed telephony concession was a possibility that had been gaining strength in Anatel since March, with the worsening of the operator’s financial situation. But the measure is complex, because it requires the service to be put out to tender again, or that it be administered by the government itself, through Telebrás, if there are no interested parties.

Oi states in the note that its judicial recovery process has no impact on its operations. “Customer services and sales, facilities, field operations and customer support activities continue to run smoothly.”

The company added that Anatel, as the granting authority, has a fiduciary duty to monitor the operations of the concessionaires. He also said that in the case of Oi, there is a different regime due to the recovery process.

Sercomtel case

Ending the concession would be unprecedented in Brazil. The case that came closest to extreme measures was that of Sercomtel, which had around 260,000 subscribers in the city of Londrina (PR).

Anatel created a group to monitor the company, due to the continuous deterioration of its financial situation, and opened an expiration process when the high risk of insolvency was verified.

But it did not come to an end because the operator ended up bought beforehand, by the Bordeaux fund, which is linked to businessman Nelson Tanure (an investor with experience in investing in companies in crisis).

See Oi’s statement in full below:

“Oi reports that, as it has been communicated in a broad and transparent manner, it has been carrying out its Judicial Recovery process, negotiating with its main creditors, seeking a long-term solution for its future sustainability.

This process, carried out entirely privately, has no impact on its operations and services provided to customers, and sales, facilities, field operations and customer service activities, as well as other commercial activities, continue to operate regularly. operational and administrative of Hi.

Contrary to the questioning about the impacts on customer service, in search of the modernization of its services and business model, Oi has been recognized, in recent surveys carried out by Anatel itself, as the national broadband provider that presents the best customer satisfaction rates.

The company understands that the speculations about the actions of the granting authority are due to the fiduciary duty of the Agency to monitor the operations of the concessionaires, monitoring that, in the case of Oi, enters into a differentiated regime due to the process of Judicial Insolvency. , without, however, there being any reason for consideration beyond this follow-up to date.

As is known, the concession contracts and authorizations held by the company follow specific rules that determine all the obligations and measures in relation to the existence of controversies and/or breaches by both parties, and the Company has been conducting arbitration in telephony matters. . fixed concession, known to be in deficit, having presented several claims of unsustainability and financial economic imbalance of the concession that must necessarily be addressed.

While building the company of the future, the judicial recovery request is a measure that allows Oi to continue its normal operations, while at the same time seeking to balance its capital structure, including the injection of new resources into the Company.

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