A Brazilian high court ruled on Thursday that the 11 billion reais ($2 billion) debt owed by bankrupt telecom Grupo Oi SA to Brazil’s telecommunications regulator Anatel will not get preferential treatment in restructuring negotiations.
The Superior Court of Justice, known as STJ, Brazil’s second-highest court, ruled that the debt was administrative and could not be given priority treatment.
Brazil’s biggest fixed-line telecommunications operator filed for bankruptcy protection in June 2016. Oi had about 65 billion reais of debt at the time.
Oi’s in-court reorganization, which remains Brazil’s largest bankruptcy protection case to date, has been marked by disputes between creditors and shareholders over the fate of Brazil’s No. 4 wireless carrier.
Oi confirmed last week that it has received a new 16.5 billion reais ($3.2 billion) bid for its mobile assets from its three telecom rivals, Tim Participacoes, Telefonica Brasil and America Movil’s Claro.