Eneva wins confirmation of recovery plan from Rio de Janeiro court

By Kali Hays

New York, May 13 – Eneva SA received confirmation of its judicial recovery plan from the Commercial Court of the State of Rio de Janeiro on Tuesday, according to a news release.

As previously reported, the plan was approved by creditors during a general meeting held on April 30.

Eneva’s plan is intended to address the capital structure of the holding company and subsidiary Eneva Participacoes through a 40% reduction of total debt.

The company said the plan calls for an increase of capital in cash, capitalization of credits, waiver of unsecured credits and the re-profiling of the remaining debts, which will have longer payment terms and reduced financial costs.

In general, the plan calls for the full payment of up to R$250,000 to each of the unsecured creditors in two installments, without monetary adjustment or interest.

Priority of resource allocation for payment of the more than R$250,000 balance will be given to creditors that grant the greatest individual percentage reduction of credit, according to a prior news release.

Any balance that surpasses this value will be cut by 30% to 65%.

The plan also covers an estimated capital increase of R$3.3 billion, at the price of R$0.15 per share issued by the company.

The subscription to the capital may be made in cash, conversion of debt from creditors or contribution of assets from shareholders, creditors or investors of the company.

Eneva is a Rio de Janeiro-based power generation company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.