Judge stripped Oi's board as cash fell to R$21 million and liquidation loomed

On September 30, 2025, judge Simone Gastesi Chevrand of Rio de Janeiro's 7th Business Court removed Oi's executive board and board of directors, appointed judicial administrator Bruno Rezende to run the carrier, and started the process of liquidating the company, explaining she was anticipating part of liquidation's effects while essential services transition and creditors negotiate. After 30 days she would decide between full liquidation or a final chance for the recovery process.

The decision cited 'esvaziamento patrimonial' — the draining of the estate — supplying of wrong information, and contracting professionals at 'elevadíssimos' costs: about US$100 million on lawyers to pursue a Chapter 11 process in the US, which the judge called totally incompatible with the company's condition. Oi's projected cash flow for September 30 was approximately R$21 million, and the judge noted the group's once-large assets were now 'reduced to very little', with doubts about their extent.

The court also barred further dealings with Íntegra, the consultancy of CEO Marcelo Millet — installed at the end of 2024 — whose 'advisory' had been repeatedly contracted in the company's deals, and ordered a transition process for the essential public services Oi provides, 'in respect of national public security'. Oi did not respond to the ruling and Íntegra declined to comment.

Spending US$100 million on US-style restructuring lawyers while creditors waited was, in the judge's words, incompatible with the company's situation.

Repeatedly hiring the CEO's own consultancy for deals gave the court a direct conflict to strike down.

Running out of cash — R$21 million for a national carrier — left no runway for the recovery plan to prove itself.

Failing to present a transition plan for essential services removed the last argument for letting management stay.

In a reorganization, how you spend the remaining estate is the case: burning it on elite advisers while services degrade invites the court to fire you and sell what is left.

With a judicial administrator in charge, Oi entered a 30-day window after which the court would choose between full liquidation and a 'last chance' continuation of the judicial recovery, while the transition of its public services began. The long-ailing carrier, once Brazil's largest telecom, moved closer to the end of its corporate existence.