Eletrobras’ board of directors approved the payment, by its subsidiary Furnas, of all the shares of Madeira Energia — parent company of Santo Antônio Energia — that may be left over after a capital increase that may not be accompanied by the other partners in the venture.
Santo Antônio Energia, which controls a hydroelectric plant of the same name on the Madeira River (RO), is expected to raise capital of around R$1.5 billion by the end of this month to face an unfavorable arbitration decision.
However, company partners may not follow the operation — Cemig, for example, has already declared to the market that it will not make the contribution corresponding to its 8.53% stake in Madeira Energia.
In addition to Cemig and Furnas — which holds the largest share of the capital of Madeira Energia, with 43.06% — shareholders in the company are Novonor (former Odebrecht, with 18.25%), Caixa FIP Amazônia Energia (19.63% ) and SAAG (an Andrade Gutierrez vehicle, with 10.53%).
According to a statement from Eletrobras released last Thursday (26), holders of Furnas debentures will have to approve the capital increase in Madeira Energia. A meeting of debenture holders was scheduled for May 30th.
If it does not obtain this approval, Eletrobras warned that the debt represented by the debentures must be declared overdue in advance, “which could have a material adverse effect on Furnas and the Company as a result of default or crossed early maturity (cross acceleration or crossdefault) of its debts”.
This month, the president of Eletrobras, Rodrigo Limp, commented that the company was analyzing “all scenarios” in relation to Santo Antônio Energia, “including that other partners do not make the contribution”.
“We would not be able to quantify what would happen in the eventual worst case scenario, but eventually we would have to negotiate with creditors,” Limp said at the time, adding that he saw no impact of this Santo Antônio operation on the company’s capitalization.
Source: CNN Brasil
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