By Luciana Magalhaes
SÃO PAULO--Creditors of Brazilian power company Eneva SA
approved on Thursday a restructuring plan, including a
debt-for-equity swap, as part of a 3 billion-real ($997 million)
capital plan, according to a person participating in the
meeting.
The company, with 2.4 billion reais in debt, filed for
bankruptcy protection last December for its holding company, Eneva
SA, and for its Eneva Participações unit, after its lenders refused
to renew an deal to refinance its debt.
Once the debt-for-equity deal is concluded, Brazilian bank BTG
Pactual will likely emerge as the utility's main shareholder, with
an estimated 40% stake. Another two large creditors, Itaú BBA and
Citibank, will also become relevant shareholders. Germany's E.ON
SE, which currently holds a 43% interest in the company, will see
its stake diluted to 10% to 20%.
The stake of Eike Batista, the founder of the company, will drop
to less than 5% of the restructured company from around 20% now,
according to people close to the negotiations.
Eneva's creditors also approved on Thursday the sale of the
company's 50% stake in the Pecém I electric power plant to EDP -
Energias do Brasil S.A., for 300 million reais. The remaining 50%
already belongs to EDP.
Formerly known as MPX Energia SA, Eneva was founded by Mr.
Batista in 2001. Engulfed in a financial crisis, the Brazilian
businessman sold a majority stake in the utility to E.ON in 2013,
but maintained co-control of the firm.
While creditor banks will likely become shareholders in Eneva,
some are already making plans to put their stakes up for sale,
according to people familiar with the talks.
Eneva was the fourth company founded by Mr. Batista to seek
bankruptcy protection, including his flagship oil firm, Óleo e Gás
Participações, whose failure affected the businessman's entire
industrial group.
Write to Luciana Magalhaes at Luciana.Magalhaes@dowjones.com
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