Rio Court Freezes Oi Creditor Claims in Control-Abuse Lawsuit

Overview

• Judge Simone Chevrand ordered a preventive freeze on payments and linked collateral tied to claims held by certain bondholders, including funds linked to Pimco and Ashmore, while preserving their voting and veto rights.
• The case was placed under seal after the court cited plausible indications of diverted purpose and the risk of reverse harm to Oi and essential services if no intervention occurred.
• Oi alleges former reference shareholders prioritized their own recoveries by installing executives, revising pay policies, and authorizing contracts that benefited select creditors, and it seeks damages and suspension of their political rights.
• The court authorized communication with U.S. courts regarding Oi’s related Chapter 11 proceedings.
• The dispute intersects with the planned early-March sale of V.tal, which faces creditor challenges such as a credit-bid request from UMB Bank, while Pimco has publicly rejected Oi’s allegations as baseless.