- Press Releases
December 14 (Renewables Now) - Brazilian renewables developer Renova Energia SA (BVMF:RNEW11) announced on Friday it has filed a second Judicial Recovery Plan.
The new plan envisages settling credits with a real guarantee in 11 years, with a 24-month grace period. The principal is to be settled in 18 semiannual instalments. Creditors will be paid in full early if Renova manages to sell Phase A of the 743-MW Alto Sertao III (ASIII) wind power complex.
The document also allows for the divestment of several assets through auctions while making mandatory the sale of the 305-MW Phase B of ASIII. Electrical company Enerbras and small hydropower firm Brasil PCH are also included in the obligatory bundle.
The minimum prices are set as BRL 50 million (USD 9.8m/EUR 8.1m) for Phase B, BRL 1 billion for Enerbras and BRL 211 million for Brasil PCH.
Brazil's Prisma Capital Ltda previously made a binding proposal to acquire Phase B, which automatically qualifies it to take part in the upcoming competitive process for the asset.
Once more, the main reason behind the company's financial crisis is its inability to complete ASIII's Phase A. The project currently stays at an 85% completion due to cash difficulties, Renova points out in its filling.
In October 2019, Renova filed for bankruptcy as it reported around BRL 3.1 billion in total debt, including BRL 834 million in intercompany debts and BRL 980 million to current shareholders. Its first Judicial Recovery Plan was submitted in December of last year.
(BRL 1 = USD 0.197/EUR 0.163)