Material Fact – Decision of the Debenture Holders´ Meeting

MATERIAL FACT

São Paulo, August 21, 2017. Contax Participações S.A. (“Company”; CTAX3), in accordance with article 157, paragraph 4, of Law 6404/1976 and CVM Instruction 358/2002, hereby informs its shareholders, investors and the market in general, in complement to the material facts disclosed by the Company on March 23, 2017, May 19, 2017, June 5, 14, 19, 24 and 28, 2017, July 6, 10 and 28, 2017 and August 5, 8, 9, 12 and 14, 2017, that, on this date, (i), the Company resumed the debenture holders’ meetings related to the Company‘s 1st and 3rd debenture issues, suspended on August 14, 2017; and (ii) the Company installed a debenture holders’ meetings related to the Company’s 1st and 3rd debenture issues to resolve on the constitution, by the Company and/or its subsidiaries, of a real fiduciary guarantee or pledge of certain assets, rights or goods held by the Company and/or its subsidiaries in favor the financial creditors of the Company, including the debenture holders.

The holders of the Company‘s 1st and 3rd debenture issues approved, at their respective meetings, (i) the entering into of amendments to their respective issue indentures, in order to reflect the terms and conditions approved by said debenture holders on August 14, 2017 and announced to the market through a material fact disclosed by the Company on the same date; and (ii) the constitution, by the Company and Contax-Mobitel S.A., of a fiduciary assignment on certain Company bank accounts, a guarantee which will be shared with other financial creditors of the Company and its subsidiaries (“Shared Guarantee”).

The effectiveness of the approvals granted by the holders of the Company‘s 1st and 3rd debenture issues are subject to the approval of the Debt Renegotiation by other financial creditors of the Company and its subsidiaries, including, but not limited to, the holders of the Company‘s 2nd debenture issue.

To this end, also with the purpose of approving the Debt Renegotiation, the following events are scheduled for August 30, 2017: (i) the reconvening of the meeting of the holders of the Company‘s 2nd debenture issue installed and suspended on August 8, 2017, called to resolve on the amendment of the terms and conditions of the debentures in the Company‘s 2nd debenture issue; and (ii) the meeting of the holders of the Company‘s 2nd debenture issue to resolve on the Shared Guarantee.

The remaining terms and conditions of the items herein are duly described and detailed in the minutes of the debenture holders‘ meetings related to the Company‘s 1st and 3rd debenture issues, which are available on the Company‘s website (www.contax.com.br/ir).

The Company will keep its shareholders, investors and the market in general informed about the matters in this material fact.

Cristiane Barretto Sales
Chief Financial and Investor Relations Officer