China Development Bank is likely to sign a document signalling support for the restructuring plan of debt-laden Brazilian phone carrier Oi SA as soon as Tuesday, financial news agency Bloomberg reported.
The Chinese bank is discussing in the Brazilian court now how to restructure US$1.2 billion in financing it has provided to Oi six months before the operator filed for judicial recovery from bankruptcy, the report said.
It was reported last month state-controlled China Telecom Corp teamed up with private equity firm TPG to buy Oi, while another operator China Mobile has been in talks with China Development Bank to buy Oi’s wireless network.
Oi’s debt holders are scheduled to meet and vote on a restructuring plan later this month, and will meet again next month if the plan is not approved in the first meeting, Bloomberg reported.
