Light’s judicial recovery plan is presented – 07/14/2023 – Market

Light presented to the Justice, this Friday (14), its judicial recovery plan, which brings six payment options to creditors, taking into account the dispersion of the company’s debt

The company offers four options for receiving full credits. The cash payment for amounts of up to R$ 10,000 per CPF or CNPJ is aimed at around 25,000 small investors who purchased debentures, which represents more than 60% of the total.

The company also offers the conversion of debt into shares, aimed, according to Light, at investors who want to participate in the “creation of value in the group after the judicial recovery process”.

Another option is for the partner creditor Light Energia. Investors who support the total separation of the company’s capital structure, waiving any co-obligations they have via Light SA, and thus supporting the global restructuring, will have the benefit of full receipt of their credits.

Those creditors who wish to support Light Serviços de Eletricidade (Light SESA) will be able to invest resources in a FIDC (investment fund in credit rights) of the distributor at a ratio of 1.2 to 1. That is, every R$ 1.20 deposited, R$ 1 of credit can adhere to the option, with full receipt.

In addition to these options, the creditor may also receive funds in cash through a reverse auction, no longer having exposure to the Light Group. This option will be financed with funds raised from the FIDC of Light SESA’s partner creditor.

Finally, there is the debt reprofiling option, in which the creditor can receive 80% of the current debt value corrected in 15 years and indexed to the IPCA.

At the beginning of the month, Aneel (National Electric Energy Agency) stated that the results plan presented by the energy distributor Light did not bring sufficient conditions to ensure the sustainability of its concession.

With that, the agency summoned the company to inform, within 15 days, whether it will present a new recovery plan for its economic-financial framework or a transfer of corporate control plan, as authorized by law.

With operations in Rio de Janeiro, Light is facing a judicial recovery process. In a note sent to Sheetthe company said it would forward the clarifications to Aneel within 15 days.

The Light group filed for judicial recovery in May, claiming the need to seek a solution for debts of around R$ 11 billion.

The Justice of Rio de Janeiro accepted the request in the same month, granting an injunction –a kind of injunction– to suspend the financial debts under discussion.

The debts are concentrated in the distributor, but the request was presented by the holding company to circumvent legal limitations. Energy distributors are prohibited by law from entering into judicial recovery.

Light serves 4.5 million consumers in more than 30 municipalities in Rio de Janeiro. However, part of the coverage area is in areas dominated by drug trafficking and armed militia control. The company is impacted by the loss of revenue from energy theft.