E.ON says Eneva bankruptcy will have ‘no material effect’

Germany’s top utility, E.ON, says the bankruptcy of Brazilian power firm Eneva, which it controls, will have no effect on its underlying net income.

Eneva’s owner Eike Batista has filed for bankruptcy, but the German company has dismissed speculation of the impact on its business.

Eneva, which Mr Batista founded in 2001 as MPX, requested court protection in Rio de Janeiro late on Tuesday after failing to reach an agreement with creditors over $896m of its debt. In a statement E.ON said the filing will have no material effect on its net income.

The Financial Times reports that the judge is expected to rule on the bankruptcy petition within 15 days, and once the request is approved, Eneva will have 60 days to present creditors with a corporate restructuring plan.

E.ON paid almost $500m for a 10 per cent stake in MPX in 2012 as it sought new business following the German government’s move away from nuclear power. The stake promised access to fast-growing electricity demand in Brazil and Chile. However, Batista’s $30bn business empire soon crumbled soon after following the collapse of his oil business.

According to Bloomberg, Eon has so far had to write off least €1bn of the €1.3bn it has invested in Brazil.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...