Light files for judicial reorganization with R$11 billion of debt

By Sarah Lizee

Olympia, Wash., May 12 – Brazil’s Light SA filed for judicial reorganization in the Third Business Court of the Capital of the State of Rio de Janeiro on an emergency basis on Friday, according to a company news release.

The company and its financial and legal advisers have been “evaluating alternatives” regarding its own debt and the debt on which it is a co-obligor and has been in negotiations with some creditors through a mediation proceeding.

Although the company said it continues to make progress toward that direction, the challenges arising from the current economic and financial situation of the company and some of its subsidiaries remain and have been worsening.

Light said its debt stands at around R$11 billion.

“The company maintains and reaffirms its confidence in its operational and commercial capacity for the negotiation and approval of a reorganization plan that allows it to implement the intended readjustment and, thus, to restore its economic and financial balance, to the benefit of the Light Group, its shareholders, employees, creditors and other stakeholders,” the company said in the release.

Light is the third-largest distributor of electricity in Brazil.

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