Long-established Brazilian operator Oi is undergoing judicial bankruptcy proceedings. It sells core fixed-line assets via judicial auction to ease debt burdens yet remains trapped in severe cash flow crunch. The 7th Commercial Court of Rio de Janeiro ruled Oi bankrupt in November 2025, and the company has filed an appeal against the ruling. Prior to this, Oi completed multiple debt restructurings and divested mobile, fiber and tower assets to raise funds.
The judicial auction concluded in April 2026 and the formal contract was signed in July. Oi sold its Fixed-line Independent Production Unit (UPI) to Método Telecomunicações for 60.1 million Brazilian reais (approximately 11.6 million US dollars) in cash. The transaction covers switched fixed-line services, tower and cable infrastructure, subscriber base, employment and supplier contracts. Método will also take over operation of 190,192,193 public emergency numbers and payphone maintenance. In regions where Oi was the sole provider, the buyer must maintain fixed voice services until December 2028. The transaction is subject to approvals from telecom regulator Anatel and antitrust authority CADE.
Oi issued risk warnings to shareholders, estimating its cash reserves could be exhausted by 1 August 2026, posing risks of basic telecom service suspension. For the A2P‑SMS sector, Oi ranks among Brazil’s top five mobile operators. Its ongoing operational uncertainty affects SMS aggregators relying on Oi’s network, bringing uncertainties regarding channel stability and wholesale business policies.
