Light files lawsuit against agents of debenture holders – 06/19/2023 – Market

Light Holding, which is part of the Light Group and is in judicial recovery, filed a lawsuit this Monday (19) in the Justice of Rio de Janeiro denouncing the “disgraceful conduct” of fiduciary agents, responsible for defending and ensuring the rights of debenture holders .

In a petition sent to the 3rd Corporate Court of the Judicial District of the Capital of the State of RJ, and disclosed by ConJur, Light alleges that trustees have been adopting an “aggressive and uncooperative posture”, harming the negotiations of debenture holders with the energy company.

According to the company, the list of Light SA’s creditors demonstrates that the credits resulting from the issuance of debentures —the company’s debt securities— make up, to a large extent, the approximately R$ 11 billion in debt that led the electric company to the judicial recovery process.

Cited in the process as a financial advisor to the debenture holders, BeeCap said that the creditors had not yet commented on the process.

Light also alleges that the harmful posture of these agents is contrary to their legal action, because they act in the interests of only one group of debenture holders, to the detriment of all the rest. “The interest of every creditor is the receipt of his credit, which demands action in favor of restructuring [da empresa emissora das debêntures]and not loudly opposed to it”, cites the company.

According to Light, the company was not informed of the holding of most of the debentureholders’ meetings and was deprived of access to “relevant information and documents of interest to the creditors’ community, making it impossible for the Company under Reorganization and the Judicial Administration to properly exercise their functions in the uplift process”.

The company also says that it learned of many of these meetings later, through “incomplete minutes”. In addition, according to Light, the deliberations of these meetings are null, since they did not respect the minimum formal rules for their realization, in addition to the attempts to reduce the quorum, according to the company.

Light also says that there is a lack of transparency in the communication between these agents and the company’s creditors, and accuses them of disclosing false information.

Finally, Light denounces excessive and undue expenses in all debenture issues in which the electric company is listed as co-obligated, from expenses with law firms to financial and regulatory advisory services.

“The Light Group did not have access to the annexes of the meeting minutes to evaluate the proposals debated, nor was it informed about the criteria that led to the choice -whether lower price, expertise in the area or reputation”, says the company.

Therefore, the company says in the process that “it will not make any payments related to the deeds of debentures at this time”.

A SheetLight explained that it “demonstrated itself to Justice against the payment of fees for advisors hired by debenture holders, including financial and communication fees, among others, as it has no obligation to pay for these costs that were charged to them”.

The company reinforced, however, its commitment to creditors, “maintaining positive conversations with most of them in search of readjustment of its financial indebtedness”.