Deals Corner: Member Success Stories22/11/2012
Felsberg, Pedretti e Mannrich Advogados e Consultores Legais (São Paulo, Brazil) has assisted CELPA (Centrais Elétricas do Pará S.A.) in its court-supervised reorganization proceeding. CELPA is a subsidiary of Grupo Rede Energia, one of the biggest private business groups in the Brazilian electricity sector, and provides electricity to over 7.7 million people in the State of Pará, through over 1.8 million registered consumer units. Through Felsberg’s restructuring strategy, it was possible for CELPA to reduce its indebtedness from approximately US $1.6 billion to US $720 million, continue to distribute electricity to its consumers, and become an interesting target for new investors. The reorganization proceeding was very successful as it encompassed the approval of a reorganization plan on September 1, 2012, by almost all of CELPA’s creditors and the entry of a new investor, Equatorial Energia S.A, which will inject more than US $350 million into the company in a two-year period. Further, Felsberg has been working closely with a New York firm to file a Chapter 15 Petition in the United States, in order to give effectiveness to the Brazilian plan abroad.