Summary of Oi Soluções‘ situation (as of November 10th)
This text details the precarious financial situation of Oi Soluções and the ongoing decision-making process regarding its future. Here’s a breakdown of the key points:
Current Status:
* Judicial Management: Oi Soluções is under judicial management after former managers were removed.This extends to its subsidiaries, Serede and Tahto.
* Decision deadline: A critical decision regarding bankruptcy or continued recovery was due on November 10th. There’s a possibility of an extension.
* Transition to Claro: The operation contracts of CINDACTA are being transitioned to Claro with the approval of various authorities.
Financial Overview:
* Liabilities: Oi Soluções has liabilities exceeding R$1.7 billion, in addition to debts already being renegotiated under judicial recovery.
* Assets: Estimated assets range from R$20.1 billion to R$50.1 billion.
* Potential Revenue: A meaningful potential revenue stream exists through arbitration regarding the economic-financial imbalance of the concession (possibly up to R$65 billion from the Union).
* liquid Assets: R$33.5 million in free cash as of October 31st.
* Property: 7,877 properties valued at approximately R$5.8 billion are available for disposal.
key Players & Positions:
* Judicial Management/Administration: Suggest a transition period before definitive liquidation.
* Anatel (National Telecommunications Agency): Concerned about non-compliance with commitments (CoLR, etc.). Prefers a buyer to assume existing obligations. exploring global disposal of contracts as a solution. Prioritizes debt settlement to AGU and V.tal from any arbitration winnings.
* AGU (Attorney General of the Union): Involved in the process and potential debt settlement.
* MP-RJ (Public Prosecutor’s Office of rio de Janeiro): Requests:
* Invalidity of the Self-Composition Agreement to prevent the release of guarantee funds and maintain the freeze on arbitration funds.
* consideration of emergency public capital contributions to ensure continued operation.
* Information from the federal Union and Anatel regarding plans to maintain services and preserve jobs.
Possible Outcomes (as of November 10th):
* Extension of Deadline: Further delay in the decision.
* Liquidation: Complete shutdown of the company.
* Transition Period: A temporary phase before eventual liquidation, allowing for an orderly wind-down.
* Continued Recovery: A path forward for the company, though increasingly unlikely given the financial situation.
In essence, Oi Soluções is facing a critical juncture. While potential assets and arbitration winnings offer a glimmer of hope, the overwhelming debt and operational difficulties point towards a likely liquidation or a heavily managed transition period.
