NEW YORK, June 3, 2013 /PRNewswire/ -- The Steering Group of Holders of the 11.125% Perpetual Notes issued by Rede Energia S.A. consists of large institutional investors who make significant investments in Brazil. The Steering Group is encouraged by the recent news that Energisa and Copel — well-capitalized and well-qualified investors — have now made a concrete proposal to acquire Rede's assets. The Steering Group welcomes the opening of the Rede insolvency process that this new proposal signals, since the proposal offers for creditors' prudent consideration a viable and much more valuable alternative to the plan Rede has proposed.
As has been reported, Rede's plan was designed around a single investor team who was given the exclusive right to complete diligence as the basis for its proposed investment. As the Steering Group predicted, and as the new proposal makes plain, such exclusivity destroys stakeholder value, whereas opening the process to fair competition is value-enhancing for all stakeholders. And the objectives of any insolvency process include maximizing value for all stakeholders.
The Steering Group trusts that the authorities at the Ministry for Mines and Energy and at ANEEL agree that the announcement of the new proposal from Energisa and Copel is substantially positive, for Rede's stakeholders, for the electricity distribution industry, and for Brazil. The Steering Group looks forward to the full support of the Government in facilitating fair consideration of the new proposal. This fair consideration must include ensuring Rede provides to Energisa and Copel full and immediate access to all information and officers that Rede provided to the investor team in Rede's existing proposed plan, and ensuring creditors have a full and fair opportunity to evaluate the proposal from Energisa and Copel.
For inquiries, contact the Group's legal advisor Tim DeSieno, Bingham McCutchen LLP, +1 212 705 7426; firstname.lastname@example.org.
This communication is neither an offer nor a solicitation to participate in any transaction in any jurisdiction.
SOURCE Bingham McCutchen LLP