Nine years after its first request for court protection, Oi has been declared bankrupt by a Rio de Janeiro court. In her ruling, Judge Simone Gastesi Chevrand, of the 7th Business Court of Rio de Janeiro— where the company’s restructuring case is being handled—ordered the suspension of all lawsuits and enforcement actions against the telecom carrier, as well as a ban on any sale or encumbrance of the bankrupt entity’s assets.
The market reacted swiftly to the decision, sending the company’s shares tumbling. Common shares closed down 35.71% at R$0.18, while preferred shares dropped 47.85% to R$2.43—the steepest declines on B3 on Monday (10).
The company’s operations will continue on an interim basis under the…