By Brazil Stock Guide – The court-appointed manager overseeing Oi SA said the Brazilian telecom company may become unviable from August 1, as its cash position deteriorates rapidly.
In filings submitted in appeals brought by Itaú Unibanco and Banco Bradesco, the court-appointed manager said Oi’s projected cash availability for the end of July fell to R$19.6 million from R$88.1 million under the previous scenario. According to the documents, that level of liquidity would make the company’s operations unsustainable “from the standpoint of operational continuity.”
The appeals challenge a decision by the 7th Business Court of Rio de Janeiro that converted the judicial reorganization of Oi and some of its subsidiaries into bankruptcy, while allowing the group to keep operating on a provisional basis. The appeals hearing was suspended after appellate judge Augusto Alves Moreira Júnior requested more time to review the case.
The court-appointed manager said the worsening outlook reflects, among other factors, growing market distrust over the group’s solvency. According to the filings, that environment has made it harder for Oi to sign new contracts, launch new products and retain customers, with clients migrating to rival telecom operators and putting further pressure on financial projections.
The filings also point to legal and procedural obstacles that have reduced the expected inflow of non-operating revenue needed to cover essential expenses. These include the pending decision on the conversion of the reorganization into bankruptcy, appeals related to the sale of the V.tal unit, the unfinished sale process for the fixed-line telephony services unit, and the failed first auction round for Oi Soluções.
According to the court-appointed manager, the combination of these factors brought forward a severe strain on Oi’s ability to pay essential expenses. That scenario had previously been expected only in September 2026, but is now projected for the end of July.