Narrative
Full Description
Project narrative
In June 2018, China Development Bank provided a USD 3,895,598 loan to Telemar Norte Leste SA (TMAR), a Brazil-based telecommunications company and subsidiary of Oi SA. The loan's borrowing terms and purpose are unclear. The Central Bank of Brazil lists the loan registration (ID TA828756) as complete. This is not the first time CDB has loaned funds to TMAR or its parent company Oi. In 2009, CDB provided a USD 300 million loan (see Record ID#38142) and a USD 500 million loan (see Record ID#59394) to purchase Huawei equipment and services. In 2011, CDB provided a USD 500 million credit line facility for debt repayment purposes (Umbrella Record ID#59418). In 2015, CDB provided two separate USD 600 million loans: one for purchasing more Huawei equipment (see Record ID#59744) and the other to refinance TMAR debt (see Record ID#59611). In June 2016, Oi SA filed Brazil's largest ever bankruptcy. Consequently, they were not able to meet their repayment obligations to CDB. On June 29, 2016, the request for processing the Judicial Reorganization of Oi Group was granted by the Judicial Reorganization Court and the respective Judicial Reorganization Plan ("PRJ") was approved by Oi Group creditors at the Creditors’ General Meeting held on December 19 and 20, 2017 and ratified by the Judicial Reorganization Court by decision issued on January 8, 2018. This plan described the different conditions and measures to be adopted to reverse Oi Group’s momentary crisis, having demonstrated its economic-financial and operational feasibility, as well as the profitability of its activities.