Brazil stocks sharply decline after Oi bankruptcy protection

Brazil's stock sharply declined after Oi SA filed for the country's largest ever bankruptcy protection.

Oi is Brazil's number one fixed-line phone carrier and the protection is from creditors on 65.4 billion reals in liabilities after a failure to organise operations during the country's recession.

The decline in stocks weigh heavily on banks that have lent money in the past to Oi, adding to Brazil's already painful economic situation.

The shares of Oi on the Bovespa stock index, Brazil's benchmark, fell 31 per cent to a new low.

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Read more at Reuters.