December 2, 2016 / 10:52 AM / 2 years ago

Court to decide on bankruptcy of Brazil's Oi Dutch units in January

SAO PAULO, Dec 2 (Reuters) - Brazilian telephone company Oi SA, which is under creditor protection, said court administrators had filed a petition in an Amsterdam court to convert the suspension of payment status of two Oi subsidiaries into bankruptcy.

Earlier this week, Oi said that Dutch judicial authorities could enforce bankruptcy proceedings on the Netherlands-based units, which issued most of its bond debt.

Oi has said it hopes any potential Dutch bankruptcy proceedings do not have a significant impact on the process in Brazil, where in June it filed for creditor protection to restructure about 65.4 billion real ($18.3 billion) in debt.

A hearing in Amsterdam has been scheduled for Jan. 12 to decide on the matter, according to a filing from Oi late on Thursday in Brazil.

The petition relates to Oi’s Netherlands-based subsidiaries, Oi Brasil Holdings Coöperatief UA and Portugal Telecom International Finance B.V. which have suspension of payments legal standing, protecting them from creditors and giving them time to restructure.

However, if bankruptcy is declared, the assets of a company may be liquidated to repay creditors, law firm LVH-Advocaten, which is based in Rotterdam, says on its website. ($1 = 3.5751 reais) (Reporting by Ana Mano; Editing by Alexander Smith)

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