A Gargantuan Refinancing

A Gargantuan Refinancing

Brazil

Enersis, Latin America's largest private sector electricity utility, with subsidiaries in Argentina, Brazil, Chile, Colombia and Peru, faced a bleak situation in 2002 as Argentina's devaluation and deepening economic crisis wreaked havoc on its balance sheet. The company's subsidiaries generated revenues in local currencies but their debts were in hard currency. As currencies across the region weakened, debt ratios at Enersis units began rising to dangerous levels. Worse still, Enersis, which is 65% owned by Endesa of Spain, and its largest subsidiary, Endesa Chile, in which it has a 60% stake, together had $4 billion in debt maturing between 2003 and 2004. They urgently needed t

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