“Dear former bondholders of Portugal Telecom,

The 2nd OI Recovery Plan was approved on April 19th.
Payment dates for creditors below $20,000 USD have been set:
– December 31, 2024 for those holding up to $10,000 USD;
– December 31, 2026 for those holding $10,000 USD to $20,000 USD.

Above $20,000 USD, there are two options:
I- Restructuring option I – Goes through three different stages:
a) The former bondholders must commit to making a new loan. This new loan is worth 655 million dollars to be made in July 2024, and 650 million dollars will already have been taken by large creditors, so the amount expected to be paid to each former bondholder will be reduced. The more creditors join, the lower the amount to be subscribed. This new loan matures in 2027 and has an interest in dollars of 10% to 13.5%, depending on whether or not it is capitalized.
b) The proportional amount that the creditor has subscribed to in the new loan will receive new titles (roll-up debt) up to 1,350 million dollars (6,750,000,000 reais). Most roll-up debt in dollars matures in 2028 and has an interest rate in dollars of 8.5%.
c) The remaining amount to complete the credit amount is converted into OI shares, listed only on the São Paulo Stock Exchange. The exchange value of the shares is set by OI Board of Directors, with current shareholders having preemptive rights, which if exercised, the respective value reverts to creditors. These subscription rights to OI shares can be traded.

Example: Creditor with 100,000 USD of credits.
You will have to lend a new amount, which for easier understanding is 10,000 dollars (with interest of 10% to 13.5% and maturity in 2027).
Then, it receives around $20,610 of roll-up debt securities (8.5% interest due in 2028).
The remaining $79,390 is converted into OI share subscription rights.
II- Restructuring option II:
– 8% of credit – A&E debt Reinstated- Payable on the last business day of December 2044;
– 92% of credit – participatory debt – Paid on the last business day of December 2050. Can be paid in advance, with 50% of OI’s profits, as long as all other debts have been paid. OI may, at its sole discretion, at any time, by paying 10% of the credit, settle these credits.
– No interest is paid on credits in dollars.

III- Whoever does nothing. Those who do not do option I or II:

– 24 years grace period, until the last business day of 2048;
– payment in 5 equal and successive annual installments, that is, until 2052;
– no interest is paid;
– OI may, at its sole discretion, at any time, by paying 15% of the credit, settle these credits.

You can access the full version of the Plan at https://recuperacaojudicialoi.com.br/wp-content/uploads/2024/04/oi-plano-de-recuperacao-judicial-19-04-2024-limpa.pdf

Please note that the new Plan only applies to those who made the twelve-year Payment Option Choice in 2018.
Proof of credit is based on the statement issued by Kroll Agency Services Ltd. If you have already been our client, in most cases, we already have your statement in our possession.
The Plan will still have to be approved by the judicial recovery judge, so we estimate that by mid-May, we will be able to start services for choosing the payment option for the 2nd OI Recovery Plan.
With our regards,

Lisbon, April 26, 2024”