Oi Bankruptcy Filing Torpedoes Stock of Services Provider Contax
- Telemarketing services provider Contax drops to five-month low
- Oi sought protection from creditors for its $19 billion debt
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Telemarketing services provider Contax Participacoes SA slumped to a five-month low after one of its top clients, phone carrier Oi SA, filed for bankruptcy protection.
Contax lost 24 percent to 7.19 reais at 2:29 p.m. in Sao Paulo, on course for the lowest closing price since January. Investors dumped the stock on concern Contax will struggle to get paid by Oi for services already provided and concern future business will be curtailed. Oi accounts for about 40 percent of Contax’s revenue.