Brazilian telecom company Oi's largest shareholder GoldenTree wrote another
letter to the company's board calling "upon the Board to take responsibility and replace the CEO given the massive and ongoing destruction of shareholder value during his tenure."
GoldenTree said they are surprised that Oi CEO Eurico Teles has not voluntarily resigned "given the collective desires of Oi's shareholders and his dismal track record since approval of the Plan of Reorganization."
Citing press reports, GoldenTree said they are aware of a transition plan "allowing the appointment of a Chief Operating Officer who may, in time, become the Chief Executive Officer."
The investment management company said that it cannot understand why the Chief Operating Officer would report to a CEO that has no operational experience. "Oi needs to immediately replace the current CEO with an experienced professional who has the skills and experience to run a major operational turnaround," GoldenTree asserts.
The letter urges Oi's board to consult with independent counsel on the governance matters, arguing that the board is relying on outside counsel who is also taking direction from the CEO.
"If the current asset sales under consideration do not materialize Oi may require more capital. While we are willing to work with other stakeholders or alone to assist in future capital raising, we will not do so while the current CEO is in place and where there is little accountability," GoldenTree says.