Troubled Brazilian operator Oi announced the resignation of its CFO, following the poor reception of a restructure plan intended to pull the company out of bankruptcy protection.

In a statement, the company said Flavio Nicolay Guimaraes, who also served as investor relations officer, had presented his resignation, but notably did not provide a reason for his departure.

Oi, which filed for bankruptcy protection earlier this year as it struggled with its debt burden, submitted a recovery plan with courts last week. It would have seen bondholders face a “haircut” of 70 per cent, receiving new debt with a face value of 30 per cent of the outstanding totals.

These could be converted into up to 85 per cent of Oi’s equity if not redeemed in three years.

The plan, presumably supported by Guimaraes, was rejected by a group of bondholders, who described it as “unacceptable”, reported Reuters a few days after it was proposed.

Other options in the plan included assigning priority to creditors willing to commit new funding to help the company exit bankruptcy.

Oi could also seek new capital and proposed the sale of several assets, including its mobile unit.

The bondholder group is now reportedly working with other relevant creditors to submit an alternative proposal.

Guimaraes will be replaced by Ricardo Malavazi Martins, who served as CFO for Petros, the pension fund of oil company Petrobras for six years.

Martins has also resigned from his position as a member of the board at Oi as a result of his new executive role.