Oi (OIBR3) Says New RJ Plan Will Lead to Appreciation, Avoiding Counter-Split

Introduction

In response to a question from B3 SA – Brasil, Bolsa, Balcão, Oi (OIBR3) stated that the approval of a new Judicial Recovery (RJ) Plan would result in the appreciation of the company’s shares. This development would make it unnecessary to carry out a counter-split or any other measure to recover the R$ 1.00 share price level.

Oi emphasized that the approval of the RJ Plan would play a crucial role in the company’s future and provide visibility regarding its long-term sustainability.

However, if the share price does not consistently reach a level higher than R$ 1.00 during the judicial recovery process, Oi intends to propose alternatives to restate the share value within the limits set by B3, in accordance with applicable regulations.

Negotiations with Creditors

Oi also confirmed that it continues to negotiate with its main creditors. The company aims to present a revised RJ proposal as soon as possible to be voted on at the General Assembly of Creditors and subsequently approved by the court of the Seventh Commercial Court of the Court of Justice of Rio de Janeiro.

Importance of the RJ Plan

The approval of the new RJ Plan holds significant importance for Oi’s future prospects. The plan not only addresses the financial aspect of the company but also ensures its long-term viability and sustainability in the market.

Proposed Share Value

If the share price fails to consistently exceed R$ 1.00, Oi intends to propose alternatives to the Company’s Board of Directors to confirm the value of the share within the acceptable limits defined by B3 and in compliance with relevant regulations.

Further Insights into the RJ Plan

Expanding on the topic, it is important to understand the concept of a Judicial Recovery (RJ) Plan. A RJ Plan is a financial and business restructuring process designed to revive a company facing financial distress and enable its survival in the market. It focuses on resolving the company’s debts and potential bankruptcy risks.

The approval of a new RJ Plan is crucial for Oi because it not only provides a roadmap for financial stability but also instills confidence among shareholders, investors, and creditors. The successful implementation of the plan will result in the appreciation of Oi’s shares, leading to potential gains for existing shareholders.

The Role of Share Price in the Recovery Process

The performance of Oi’s share price plays a vital role in the overall recovery process. A consistently increasing share price signifies investors’ confidence and trust in the company’s future growth prospects. It not only attracts new investors but also ensures favorable terms for Oi in negotiations with its creditors.

However, if the share price fails to consistently reach a level higher than R$ 1.00 during the judicial recovery process, Oi will explore alternatives to restate the share value that complies with B3 rules and regulations. This highlights the company’s commitment to ensuring fair market valuations and aligning with the applicable norms.

Oi’s Negotiations with Creditors

Oi’s continued negotiations with its main creditors are a positive sign for the company’s recovery prospects. These negotiations are crucial for reaching a consensus on the revised RJ Plan, ensuring that it gets the necessary approvals from the General Assembly of Creditors and the court.

Successful negotiations with creditors will not only pave the way for a viable RJ Plan but also reflect the willingness of stakeholders to support Oi’s recovery efforts. Furthermore, reaching an agreement with creditors will help alleviate financial pressure and provide Oi with the necessary resources to execute its business strategies effectively.

Conclusion

The approval of a new Judicial Recovery (RJ) Plan holds immense importance for Oi. It is a critical step towards ensuring the company’s financial and operational revival. The successful implementation of the plan will lead to the appreciation of Oi’s shares, safeguarding the R$ 1.00 share price level without the need for a counter-split.

As Oi continues to negotiate with its main creditors, it aims to present a revised RJ proposal that addresses the concerns and requirements of all stakeholders. These negotiations are essential for gaining the necessary approvals and support, ultimately leading to Oi’s successful recovery.

Summary:
Oi (OIBR3) has stated that the approval of a new Judicial Recovery (RJ) Plan would lead to the appreciation of its shares and eliminate the need for a counter-split. The company emphasized the importance of the RJ Plan for its long-term sustainability. If the share price fails to reach a consistent level above R$ 1.00 during the recovery process, Oi intends to propose alternatives to restate the share value within the permissible limits defined by B3. Oi continues to negotiate with its main creditors and aims to present a revised RJ proposal to be voted on at the General Assembly of Creditors and subsequently approved by the court. The successful implementation of the RJ Plan will not only address the company’s financial debts but also instill confidence among shareholders, investors, and creditors. Ultimately, the approval of the new RJ Plan is crucial for Oi’s successful recovery and future prospects.

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