October 16 (Renewables Now) - Brazilian renewables developer Renova Energia SA (BVMF:RNEW11) announced today that it is filing for bankruptcy protection.
The move is necessary as the company currently has total debt of around BRL 3.1 billion (USD 742.6m/EUR 672.6m), including BRL 834 million of intercompany debts and BRL 980 million to current shareholders.
Renova said that it intends to reestablish its economic and financial balance through the Judicial Reorganisation Plan it will present to its creditors later. The company pointed out that the the judicial reorganisation request does not concern Brasil PCH SA and its 13 units, as well as Enerbras Centrais Eletricas SA and subsidiary Energetica Serra da Prata SA.
The bankruptcy filing comes days after one of Renova's major shareholders, Light SA (B3:LIGT3), sold its 17.17% stake in the company to CG I Fundo de Investimento em Participacoes Multiestrategia for a symbolic value of BRL 1.
A few days earlier, Brazilian energy firm AES Tiete Energia SA said it had ended talks to acquire the roughly 743-MW Alto Sertao III wind power complex plus a 1.1-GW wind project pipeline from Renova.
(BRL 1 = USD 0.240/EUR 0.217)