Yahoo Finance Rio de Janeiro’s Utility Closes Deal With Creditors For Debt Restructuring
(Bloomberg) -- Rio de Janeiro’s utility Light SA reached an agreement with creditors, moving a step closer to leaving a bankruptcy protection process that started last year, according to people familiar with the matter.
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The deal includes 1 billion reais ($200 million) in equity injection from the company’s main shareholders, Nelson Tanure, Ronaldo Cezar Coelho and Carlos Alberto Da Veiga Sicupira, who own a combined 65% of the company, the people said, asking not to be named because the discussions are private.
MORE: Light Said Open to Negotiate Share Price for Debt-to-Equity Swap
Light, which has about 11 billion reais in total debt, filed for bankruptcy protection almost a year ago, after warning regulators it lacked enough revenue to cope with an increasing debt burden, blaming energy theft and high delinquency rates.
The binding agreement will become a full restructuring plan that must be approved at the creditors’ meeting scheduled for April 25.
The deal includes a debt-to-equity conversion up to 2.2 billion reais and the issuance of two new bonds — one with a 8 years maturity paying inflation plus 5%, and another with a 13 years maturity paying inflation plus 3%.
(Updates with details on the agreement in last paragraph)
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