UPDATE 2-Brazil Oi's in-court reorganization helps ease cash burn
(Recasts with expected easing of cash burn, adds financial details and CEO comments)
By Ana Mano
SAO PAULO Aug 11 (Reuters) - Oi SA is expected to burn less cash this quarter thanks to a June petition to win court protection from creditors, which is temporarily sparing Brazil's largest fixed-line phone carrier from paying debts, executives said on Thursday.
Chief Executive Officer Marco Schroeder told analysts on a conference call that planned changes in industry rules under discussion in Congress could help improve the outlook for Oi's operations. The company released weak quarterly results earlier on Thursday.
While Oi executives declined to elaborate on the company's in-court reorganization process, Schroeder said the bankruptcy protection filing "has so far not affected day-to-day operations." Oi filed in June for bankruptcy protection to restructure 65.4 billion reais ($21 billion) of debt.
Preferred shares of Oi, which plans to present a reorganization plan by early September, were up 0.43 percent at 2.33 reais on Thursday.
On the financial side, the suspension of pending debt payments will allow Oi to preserve cash this quarter, Schroeder said. Oi's cash position fell 41 percent to 5 billion reais last quarter mainly due to financial expenses and payment of a last installment on rights to operate 3G wireless licenses.
Rio de Janeiro-based Oi lost a net 656 million reais ($210 million) last quarter, worse than the consensus estimate of 256.9 million reais compiled by Thomson Reuters from analysts, in the wake of higher selling, general and administrative expenses and declining revenue. Continuación...