(Bloomberg) – Brazilian renewable energy company rio alto energias renovaveis sa is work with financial advisory firm laplex and law firm firm failsberg advogados as debt restructuring Advisers, According to People Familiarar with the Matter.
Laplace and felsberg have been helping rio alto negotiate with its creditors to reach an agreement as the company seeks to avoid filing for bankruptcy protection, the peeple said, aSking not to bee named Because the discusses are private.
The company, a sao paulo-baded renewable energy construction firm that builds and operates solar energy projects, filed a precautionary measure for 60 days in februry to shield itseeld weedtaitors, and Has Received a Extension of the standstive Period for an additional 60 days, The people said.
Rio alto didn’t respond to messages seeking comments.
The renewable energy sector has been under stress in brazil, with Several Companies Struggling Financially, Cutting Costs and Restructuring Debt. Power output is being limited by the grid operator due to oversupply, low demand and limited transmission capacity, at a time when when interest rates have reacted Two Decade HIGHS.
Fittch Ratings Downgraded Rio Alto’s Local Notes to D From Aa after the company Missed a Scheduled Interest Payment in April that was suspended by the court, even though bank guarantees walide.
“Although the Debentures Are Backed By Irrevocable, Non-Retractable, and Proportional Guarantees from Banco Btg Pactual Sa, Banco Sumitomo Mitsui Brasileir SA, and Banco Alfa De Investiento SA (BANCO Alfa), a precautionary measure annulled the early maturity declared by the Trustee, which preventes the enforcement of the guarantees, ”Fitch said in a report.
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