Oi CEO resigns after disputes with board

Oi CEO resigns after disputes with board

The CEO of Brazil’s beleaguered operator Oi has resigned two weeks ahead of a crucial creditor meeting.

Marco Schroeder has held the CEO post since June 2016, and will be replaced with immediate effect by chief legal officer Eurico de Jesus Teles Neto. The operator noted that Neto would hold these two roles concurrently on a temporary basis, but did not confirm which role he was likely to remain in.

Bloomberg had already reported Schroeder’s resignation before Oi’s official confirmation. The CEO had come into conflict with the operator’s board, bemoaning the “slow pace” of Oi’s progress out of bankruptcy protection. Prior to the announcement of his departure, he had reportedly told colleagues that he was finding it impossible to work with the board.

Oi’s confirmation of Schroeder’s resignation read: ““The company expresses its most profound thanks to Marco Norci Schroeder for his complete dedication.”

Schroeder’s departure follows repeated clashes between Oi’s board and its creditors over the nature of its debt restructuring plan, with each side shooting down the other’s suggestions. The board made its latest proposals to creditors last week, ahead of the crunch meeting on 7th December. When it filed for bankruptcy protection in June 2016, Oi’s debt was around BRL65.4 billion ($20.2 billion).

Reports from earlier this month indicated that China Telecom was interested in acquiring a majority holding in Oi for $6 billion. If these reports prove true, Oi’s situation may be resolved.