BRASILIA, Oct 23 (Reuters) - Brazil's telecoms regulator Anatel on Monday is set to reject a request by indebted telecoms company Oi SA to swap almost 5 billion reais ($1.57 billion) in regulatory fines for new investments, newspaper O Estado de S. Paulo said on Monday.
Anatel councilor Otavio Luiz Rodrigues has recommended that proposal be rejected and he will probably be followed by the other Anatel board members, Estado said, without citing sources.
Anatel's extraordinary board meeting on Oi starts at 11 a.m. local time. A rejection could complicate the phone carrier's plans to have a debt restructuring plan approved by creditors at a November 6 assembly, in the largest-ever bankruptcy proceeding in Latin America.
In September, a Brazilian court authorized a proposal by Oi competitor Telefonica Brasil to swap 2 billion reais in regulatory fines for new investments.
Anatel media representatives did not respond to an emailed request for comments.
($1 = 3.1927 reais) (Reporting by Silvio Cascione. Editing by Jane Merriman)