Brazilian-focused private equity firm Laep looks set to head a consortium of local and international investors in buying out the country’s debt-riddled power distributor Celpa.
Laep will team up with two US and one Canadian energy fund to invest in the company, which filed for bankruptcy protection in February citing “the worsening financial and economic situation”, according to Reuters.
It said Rede Energia, which has a 54 per cent stake in Celpa, was struggling to sell its holding because of a lack of firm bids, while the government’s refusal to bail it out had sparked a tumble in bonds.
Laep, which concentrates its investments in distressed companies, has proposed a restructuring plan with creditors which would protect Rede in case of a Celpa default.
It is understood the firm would be able to offer more for Celpa assets than other potential bidders.
Franklin Templeton Investments’ buyout arm Darby Private Equity invested $30m in Brazil’s Bioenergy Geradora de Energia and another $30m in Produman Engenharia at the end of last year.
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