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The Company Filed for Judicial Recovery in the State of Rio de Janeiro. Light Also Acknowledged Its Debts Amid Another Difficult Moment in the Energy Market.
The energy company Light announced last Friday, (05/12), the filing of a judicial recovery action in the 3rd Business Court of the State of Rio de Janeiro. It also acknowledged its debts totaling R$ 11 billion, now facing one of the most difficult moments in the company’s history. It claims to be seeking alternatives in the market and resorting to possible means to face this scenario and continue in the energy sector.
Energy Company Files for Judicial Recovery in Rio de Janeiro
Light, the electric power distribution company in Rio de Janeiro, announced today that it has filed a request for judicial recovery in the 3rd Business Court of the State of Rio de Janeiro, due to the financial difficulties it is facing.
The company acknowledged a debt of R$ 11 billion, resulting from losses recorded in recent years, attributed to energy theft in high-risk areas within its concession area.
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This is yet another complicated moment in the company’s history, which has been citing the aforementioned losses as the main drivers of the current scenario.
Despite the news, the energy company announced to the market that it is in search of viable alternatives to recover in the sector.
Check the statement released by the company below:
“Although it continues to make progress in this regard, and despite the efforts undertaken in recent months, the challenges arising from the current economic-financial situation of the Company and some of its subsidiaries (“Grupo Light”) remain and have been worsening, which demands the urgent adoption of other measures that can protect them until it is possible to implement the aforementioned restructuring of its indebtedness and the reorganization of its capital structure, with the protection and maintenance of the services rendered under the concessions held by Grupo Light, the continuation of strict compliance with inter-sectoral obligations, the preservation of value, and the promotion of its social function.”
Light Reports Profit of R$ 107.1 Million in the First Quarter of 2023
After announcing a loss of over R$ 5.67 billion in 2022, the energy company Light reported its financial results for the first quarter of 2023.
According to the company, the profit during this period in the national market was R$ 107.1 million, while debts increased from R$ 9.03 billion to R$ 9.3 billion at the end of March.
The company also reiterated in a statement its confidence in its operational and commercial capacity to negotiate and obtain approval for a recovery plan that will allow it to achieve the desired economic-financial balance.
After the filing for judicial recovery by the holding company Light S.A, which currently controls Light Serviços de Eletricidade S.A. (Light Sesa), the company continues to await the next steps of its position in the energy market amid the debts.
About Light
Light is a Brazilian electric power distribution company, headquartered in Rio de Janeiro. Founded in 1905, it is one of the oldest concessionaires in the country and serves over 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 allows it to restore the company’s balance in the Brazilian energy market.
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