Reuters: Bankruptcy News: Shareholders back Celpa recovery plan, await regulator's OK

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Shareholders back Celpa recovery plan, await regulator's OK Sep 2nd 2012, 16:54 Sun Sep 2, 2012 12:54pm EDT * Creditors back stake capital injection by Equatorial * Plan needs approval of power regulator Aneel to proceed * Aneel to seize eight troubled Rede Energia distributors By Anna Flávia Rochas SAO PAULO, Sept 2 (Reuters) - Creditors of bankrupt Brazilian power distributor Celpa, backed a proposed recovery plan on Saturday that would involve a stake sale to another utility, Equatorial Energia, but the plan still needs the approval of power industry regulator Aneel. Celpa's creditors backed the proposal that would bring in a 700 million reais ($345 million) injection of funds from Equatorial and possibly others. "This approval indicates creditors approve of the company's plan ... But the company still has no cash and we need to move quickly so Equatorial can enter into the company," Celpa's judicial administrator, Mauro Santos, told Reuters after the creditors' assembly meeting. Aneel had been expected to vote last Friday on Equatorial's proposed entry into Cepal, but Aneel said that Equatorial had requested the discussion be delayed as it had doubts as to the viability of its offer. Aneel did not give further details on what reservations Equatorial was having. Aneel has not given any indication yet of when it now plans to discuss the proposed entry of Equatorial into Celpa. The creditors' approval of Equatorial's proposal came a day after Aneel voted to seize eight of the distribution companies belonging to Grupo Rede Energia, Celpa's controlling shareholder, in the biggest ever direct government intervention in the sector. See: Celpa itself was not affected by this decision since it had already previously filed for bankruptcy protection in February. Celpa's debt is around 3.4 billion ($1.68 billion). State-controlled power holding company Eletrobras is one of its shareholders, with its 34 percent stake. Eletrobras is not expected to make further contributions towards Celpa's capital. ($1 = 2.0291 Brazilian reals) (Writing by Peter Murphy; Editing by Theodore d'Afflisio) Link this Share this Digg this Email Reprints

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