Brazilian renewable electricity producer Renova Energia has filed for bankruptcy protection as it seeks to restructure its BRL 3.1bn (US$742m) debt. Failed negotiations to sell heavily indebted wind projects and the sale of a 17.17% participation by Light SA to an investment fund for the symbolic value of BRL1 triggered the move. Renova Energia is now elaborating a restructuring plan, which will be submitted to the bankruptcy court and creditors.
Renova had been trying to sell some wind projects for more than two years. Negotiations with Brookfield Asset Management ended with no agreement in July 2018. The group then entered into discussion with AES Tietê, a subsidiary of US-based energy group AES Corp, for the sale of the Alto Sertao III wind power project. As part of the deal, AES Tietê would have assumed the related BRL 988m (US$ 255m) financial debt, mainly with the Brazilian development bank BNDES. However, the Brazilian electricity regulator ANEEL blocked the proposed sale in June 2019.