AES Hits Second Default in Brazil
The Brazilian subsidiary of global power company AES Corp.
in late February defaulted on a $330 million payment due to the
government's BNDES development bank. As a result, BNDES may
assume AES's stake in Eletropaulo Metropolitana, Latin
America's largest utility that distributes power in the city of
São Paulo.BNDES has the right to demand immediate
payment of $605 million after AES missed a February 28th
deadline for payment. The company said that other creditors
accepted its offer to wait until April 15th for a $6.5 million
payment. Virginia-based AES also missed a $35 million payment
in January and still owes BNDES $1.2 billion for loans it took
out to buy control of Eletropaulo and unwind a
post-privatization cross-shareholding arrangement with Rio de
Janeiro based Light.AES wants BNDES to restructure its
Brazilian debt because last year's 35% decline in the real cut
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.