Today, the 27th, Oi signed an agreement to sell scrap to V.tal. However, the deal is taking place in the form of a cumbersome undertaking, as up to 72% of the operator’s debts to the neutral infrastructure company will be reduced. This debt, according to the latest list of creditors, amounts to 1.06 billion US dollars, or about 5 billion Brazilian reais. Therefore, the considered value of the scrap will be R$ 3.6 billion.
“The process includes the purchase of broken and unusable copper network cables from Oi (“Scrap”) by V.tal, on an exclusive basis, and the corresponding compensation and/or reduction of up to 72% of the take-up or receipt obligations.” The company’s payment for the period between 2025 and 2028,” Oi explains in a statement sent to CVM.
The reduction of up to 72% is higher than expected in March, when the negotiations became public. At that time, V.tal’s proposal was to limit the discount to 50%.
However, there will be conditions to reach the maximum rebates:
“The overall reduction can be achieved by:
(1) Reduction of up to 50% of Oi’s take-or-pay obligations under the LTLA, to be applied proportionately to the actual acquisition of the agreed volume of underground scrap that Oi had to sell and V.tal had to acquire And
(2) Compensation of up to 22% of the Company’s payment obligations under the LTLA, against the credit retained by Oi as a result of the sale of the agreed volume of scrap to V.tal.”
V.tal may also purchase underground scrap in excess of what was agreed upon or overhead scrap. In this case, up to 28% of Oi’s take-or-pay obligations may be deducted.
V.tal will bear the costs of extracting, transporting and storing the cables.
However, there is someone else interested in this junk. RK Partners went to court to secure the right to purchase these abandoned cables. Although the agreement has been signed, the sale process has been on hold since August and will not be completed immediately.
“The contract for scrap and security instruments and the third amendment to the LTLA contract were signed with a suspension clause, in accordance with Article 125 of the Civil Code, with their full effectiveness conditional on the effective suspension of the effects of the initial decision and the “restoration of the effects of judicial approval,” explains Ooi. In short, the agreement will be implemented if and when The court canceled the understanding that led to the precautionary measure being taken.
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