October 17, 2019 / 10:39 AM / 2 months ago

Brazilian court okays Renova Energia's filing for bankruptcy protection

SAO PAULO (Reuters) - A Brazilian court has accepted a bankruptcy protection request filed by renewable energy firm Renova Energia SA (RNEW11.SA), nominating KPMG Corporate Finance as the court administrator, the company said in a securities filing late Wednesday.

Renova Energia said earlier on Wednesday its bankruptcy filing involved a total debt of 3.1 billion reais ($745.5 million).

The announcement, which drove its shares sharply lower, came two days after key shareholder Light SA (LIGT3.SA) sold its 17.17% stake in Renova to an investment fund for a symbolic value of 1 real, leading Chief Financial Officer Claudio Ribeiro to resign.

The exits of Light and Ribeiro follow years of unsuccessful talks to sell Renova’s wind farm projects, which have racked up debt and raised concerns about their timely completion.

Renova’s largest creditor is Brazil’s development bank BNDES.

As part of the bankruptcy procedure, all creditors actions against Renova will be suspended for 180 days. The company will also be obliged to submit all account reports by the 30th of each month.

Reporting by Gabriela Mello; Editing by Mark Potter

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