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The company filed a lawsuit for judicial recovery in the state of Rio de Janeiro. Light also recognized its debts amid yet another difficult moment in the energy market.
A power company Light announced last Friday (12/05), the filing of a court-supervised reorganization action at the 3rd Corporate Court of the State of Rio de Janeiro. It also recognized its debts in the amount of R$ 11 billion, now facing one of the most difficult moments in the company's history. Now, she claims to be looking for alternatives in the market and resorting to the possible means to face this scenario and manage to remain in the energy segment.
Energy company files court-supervised recovery action in Rio de Janeiro
Light, an electricity distribution company from Rio de Janeiro, announced today that it has filed for judicial recovery at the 3rd Corporate Court of the State of Rio de Janeiro, due to the financial difficulties it is facing.
The company recognized a debt of R$ 11 billion, resulting from the losses recorded in recent years, attributed to the theft of energy in high-risk areas in its concession area.
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This is yet another complicated moment in the company's history, which has already been claiming the aforementioned losses as the main drivers of the current scenario.
Despite the news, the energy company announced to the market that it is looking for viable alternatives to rebuild itself in the field.
Check out the note released by the company below:
“Although it continues to advance in this direction, and despite the efforts undertaken in recent months, the challenges arising from the current economic and financial situation of the Company and some of its subsidiaries (“Light Group”) remain and have been worsening, which demands the urgent taking of other measures that may protect them until it is possible to implement the referred equation of their indebtedness and the readjustment of their capital structure, with the protection and maintenance of the services provided within the scope of the concessions owned by the Light Group, the continuity in the strict fulfillment of intrasectoral obligations, the preservation of value and the promotion of its social function”.
Light announces profit of BRL 107,1 million in the first quarter of 2023
After the announcement of a loss of more than R$ 5,67 billion obtained in 2022, the energy company Light released the financial results for the first quarter of 2023.
According to her, the profit in this period in the domestic market was R$ 107,1 million, while debts rose from R$ 9,03 billion to R$ 9,3 billion at the end of March.
The company also reiterated in a note its confidence in the operational and commercial capacity to negotiate and obtain approval of a recovery plan, which will allow reaching the desired economic-financial balance.
After the request for judicial recovery action filed by the holding company Light SA, which is currently the controller of Light Serviços de Eletricidade SA (Light Sesa), the company is still waiting for the next steps of its position in the energy market in the midst of debts.
About Light
Light is a Brazilian electricity distribution company, headquartered in Rio de Janeiro. Founded in 1905, it is one of the oldest concessionaires in the country and serves more than 10 million customers in more than 30 municipalities in the state of Rio de Janeiro. Despite the challenges faced, Light maintains confidence in its operational and commercial capacity to negotiate and approve a recovery plan that will allow the company to reestablish its balance in the Brazilian energy market.
