Oncoclínicas seeks consensus on R$ 5 billion debt restructuring

Brazilian healthcare provider Oncoclínicas is racing against an October 14 deadline to present an out-of-court restructuring plan to the courts and avoid full judicial bankruptcy protection. According to sources reported by Broadcast+, the company has so far gained agreement from holders of more than R$ 1.5 billion in Real Estate Receivables Certificates (CRIs). However, that represents only a portion of the slightly more than R$ 5 billion in debt currently under negotiation.

Debenture holders represent another R$ 2.74 billion in debt and remain key to reaching a sufficient majority. Sources indicated that formalising terms remains difficult, with circulated documents still resembling drafts. Under the latest proposal disclosed on October 2, the main restructuring model converts claims into two series of debentures: Series A, accounting for 70% of claims, pays the IPCA inflation index plus 7.75% annually with amortisation in six annual installments from 2031 to 2036. Series B, covering the remaining 30%, pays IPCA plus 8.25% with amortisation across four annual installments from 2037 to 2040.

For creditors declining the main option, an alternative offers repayment of 20% of claims via debentures paying IPCA plus 3% annually, amortised from 2037 to 2040. In operational forecasts linked to the plan, Oncoclínicas projects gross revenue to increase from R$ 4.95 billion in 2027 to R$ 6.67 billion in 2031. Adjusted EBITDA under IFRS 16 is projected to rise from R$ 522 million to R$ 1.07 billion over the same period, taking EBITDA margin from 11.9% to 17.6%.

The estimates incorporate an anticipated drop in procedure volume in 2026 caused by the loss of major health plan operators, medication shortages, and sector verticalisation. Net debt to EBITDA leverage is projected at 11.9 times in 2027, declining to 5.6 times in 2031 and 2.7 times in 2036. Free cash flow is expected at R$ 99 million in 2027 and R$ 52 million in 2031, alongside a required minimum cash reserve of R$ 200 million adjusted for IPCA.