UPDATE 1-Eletrobras seeks loan to rescue power distributors

jueves 24 de septiembre de 2015 16:50 GYT
 

(Adds context on problems facing power distributors)

SAO PAULO, Sept 24 (Reuters) - Brazil's state-run power utility Eletrobras is in talks with Brazilian banks to secure a loan of 1 billion reais (250 million) to rescue some of its indebted power distribution subsidiaries, the company said on Thursday.

Centrais Eletricas Brasileiras SA, as the company is officially known, said it is negotiating with both public and private banks, but declined to name the institutions or detail terms of the deal.

Eletrobras expects to receive a first tranche of 250 million reais by Nov. 30 and the remaining 750 million reais during the first half of next year, according to a document the company sent to Brazil's power regulator Aneel.

Northeastern power distributors controlled by Eletrobras frequently report losses stemming from fraud and consumer defaults. One of them, Ceal of Alagoas state, recently failed to pay for energy it received through Brazil's power trading chamber CCEE due to lack of cash.

Eletrobras has plans to sell some of its distributors and is trying to improve their financial situation before it offers them to the market.

($1 = 3.97 Brazilian reais) (Reporting by Luciano Costa; Writing by Marcelo Teixeira; Editing by Meredith Mazzilli, Bernard Orr)