The Brazilian government is not currently eyeing a bailout for troubled operator Oi, said Reuters, quoting the country’s communications minister.
Government officials are looking at measures to help Oi, which is Brazil’s fourth largest operator as well as its biggest fixed player, to exit from bankruptcy, said Gilberto Kassab, but are not currently comtemplating a direct intervention.
“There’s no such intention, we are just preparing ourselves in case of an event that could lead to an intervention,” Kassab said. “But, I can tell you, so far, there’s no reason to intervene Oi. We are doing our part to lend Oi support.”
The company filed for bankruptcy protection in June in what was reported to be the biggest case of its type in the country, as it struggles with its debt burden.
Kassab said the government wants to find a “market-based solution” so that it will emerge stronger from creditor protection.
He also confirmed reports that the government is looking at changing the country’s bankruptcy law to ease the way for Oi. Reports said the move might involve changes to the way operators are regulated.
In September, Latin American giant America Movil said it could be a buyer for some or all of Oi’s assets. Telecoms billionaire investor Naguib Sawiris has also gone public with a wish to invest in the struggling firm.