Tauil & Chequer Advogados advises Glas Trust LLC in the process for an emergency loan contracted by Grupo Oi

Tauil & Chequer Advogados in association with Mayer Brown advised Glas Trust LLC, as payment, calculation and registration guarantee agent, in the refinancing process of the emergency DIP loan (Debtor-in-Possession) contracted in April 2023 by Grupo Oi, worth US$ 275 million. The proposal of some financial creditors for refinancing was approved in January 2024 by the 7th Business Court of Rio de Janeiro.

In December 2023, Oi had received authorization to refinance the loan with Banco BTG Pactual. However, the group of financial creditors presented an alternative proposal worth up to US$ 400 million, considered more advantageous by the debtors. Thus, by consensus, Banco BTG chose to withdraw its proposal and waived the charge for the break-up fee initially foreseen.

Throughout the refinancing process, the Firm also worked on reviewing the financing instruments in light of the Brazilian law on judicial recoveries and bankruptcy, especially for the instrument for establishing a fiduciary guarantee on shares of the company V. Tal – Rede Neutra de Telecomunicações S.A..

The Firm’s team that advised on the operation was led by partner Liv Machado, and included the work of associates Sofia Nielsen and Ana Clara Martins, all from the Restructuring and Bankruptcy area.