Brazil court suspends Oi's R$4.5 bn sale of V.tal stake

The Rio de Janeiro State Court (TJRJ) issued a suspension on the sale of Oi's 27% stake in V.tal, valued at R$4.5 bn, after creditors challenged the price as far below the R$12 bn floor required by Oi's judicial recovery plan.

The transaction had been awarded to a consortium led by BTG Pactual (BGC Fibra Participações) and faced opposition from investors such as UMB Bank, SC Lowy Primary Investments and Pimco, who argued the offer represented less than 40% of the minimum valuation.

Judge Augusto Alves Moreira Junior granted the injunction, stating the proposal “appears insufficient” for Oi's most valuable asset. The suspension puts the company's plan to raise funds and exit its recovery process on hold, increasing uncertainty for Oi and its creditors while the merits of the objections are examined.