Reuters: Bankruptcy News: Regulator seeks speedy resolution of Grupo Rede bankruptcy

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Regulator seeks speedy resolution of Grupo Rede bankruptcy May 7th 2013, 15:34 Tue May 7, 2013 11:34am EDT SAO PAULO May 7 (Reuters) - Brazilian regulators want to speed up a plan to pull power holding company Grupo Rede Energia SA out of bankruptcy protection in an effort to avert service disruptions. Administrators assigned to keep Rede Energia's companies running during the bankruptcy process are running out of funds, which could compromise basic upkeep and lead to spotty service, Edvaldo Santana, head of energy regulator Aneel said on Tuesday. The process should be concluded ahead of a court-mandated deadline in July, sources had told Reuters in late March. "The process needs to be sped up or the situation could get worse," Santana said at an Aneel board meeting, citing concerns over smaller Grupo Rede companies currently under bankruptcy administration. Eight power distributors controlled by Rede Energia have been under bankruptcy intervention since August. Equatorial Energia SA and CPFL Energia are in the process of acquiring Rede Energia for the symbolic price of 1 real ($0.50) plus assumed debt and have the exclusive right to conduct takeover talks with the government and Rede's creditors. The judge in the case expects to reach a conclusion in the matter "over a relatively short timeline," Aneel General-Director Romeu Rufino said on Tuesday. Link this Share this Digg this Email Reprints

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