the investment bank Moelis & Co., headquartered in New Yorkis in negotiations with bondholders of the Brazilian electric company light to create a committee, said a person familiar with the matter.
The bank will hold a meeting with the concessionaire’s local and global bondholders on Thursday, the person said, asking not to be named because the discussions are not public. The idea is to create a single committee to negotiate debt restructuring with Light, according to the person.
Moelis did not immediately respond to requests for comment.
Light generates and distributes electricity in River and has struggled against high default rates and clandestine electrical connections in favelas.
It has approximately R$11.1 billion in total gross debt, of which US$600 million is external debt securities. Billionaire Carlos Sicupira has a 10% stake, the company said.
Light said it had hired Laplace Finance to advise on analyzing financial strategies, the company said Jan.
Shares in Light fell to a record low on Wednesday after the company posted a much larger-than-expected loss for the fourth quarter.
Source: Moneytimes
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