Banks, Moelis-led bondholders discuss Brazil's Oi debt relief, source says
SAO PAULO Aug 16 (Reuters) - Banks and bondholders accounting for more than half the 65.4 billion reais ($20 billion) that Oi SA owes could propose a five-year grace period and lower borrowing costs to speed up the Brazilian phone carrier's in-court reorganization, a person with direct knowlegde of the talks said on Tuesday.
The person, who requested anonymity because the discussions are preliminary and remain confidential, said the bondholder group advised by Moelis & Co and a number of lenders including Banco do Brasil SA and China Development Bank Corp are in discussions to provide Oi with a debt relief plan.
Oi filed in June for Brazil's largest in-court reorganization plan ever after the country's No. 1 fixed-line phone carrier ran out of time to reorganize operations and restructure 65.4 billion reais of debt amid a harsh recession. ($1 = 3.2005 Brazilian reais) (Reporting by Guillermo Parra-Bernal; Editing by Jonathan Oatis)
© Thomson Reuters 2016 All rights reserved.