June 27, 2016 / 5:31 PM / 2 years ago

Aurelius unit seeks bankruptcy of Netherlands-based Oi subsidiary

SAO PAULO, June 27 (Reuters) - A unit of distressed debt firm Aurelius Capital Management LP is asking a Dutch court to start bankruptcy proceedings against a Netherlands-based subsidiary of phone carrier Oi SA, which last week filed for Brazil’s largest-ever such plan.

The Syzygy Capital Management Ltd subsidiary owns bonds of Oi’s Oi Brasil Holdings Coöperatief UA, Aurelius said in a statement on Monday. The petition was filed in an Amsterdam district court, which is expected to schedule hearings on the process shortly.

Neither Aurelius nor Syzygy gave a timetable for the hearings. Under Dutch law, if the court approves the petition, a bankruptcy trustee will be appointed to defend the interests of creditors in Oi Brasil Holdings.

Apart from participating in the proceedings, the trustee will investigate Oi Brasil Holdings’ prior and current management teams and enforce the company’s claims against parent Oi and other affiliates, the statement said.

Last week, Rio de Janeiro-based Oi, which is Brazil’s fourth largest fixed-line operator, filed for court protection to restructure 65.4 billion reais ($19.4 billion) in debt. (Reporting by Ana Mano; Editing by Guillermo Parra-Bernal and Lisa Von Ahn)

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