Companhia Centro-Oeste de Distribuicao de Energia Eletrica

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Companhia Centro-Oeste de Distribuicao de Energia Eletrica was one of three distribution companies in which Rio Grande do Sul state utility’s Companhia Estadual de Energia Electrica’s (CEEE) distribution assets were corporatized for privatization. The other two companies are Companhia NorteNordeste de Distribuicao de Energia Eletrica and Companhia Sul-Sudeste de Distribuicao de Energia Eletrica. Additionally, two generation companies and a transmission company were formed from CEEE's generating and transmission assets, respectively. Companhia Centro-Oeste de Distribuicao de Energia Eletrica had more than 800,000 customers in 1996. The company was partially privatized in October 1997 when the state government sold a 90% equity stake for $1.37 billion to AES Corporation which was awarded with 30 year renewable concession to own and operate the company. After privatization Companhia Centro-Oeste de Distribuicao de Energia Eletrica had its name changed to AES Sul Disitrbuidora Gaucha de Energia S/A (AES Sul). After interim debt restructuring in 2002, AES was unable to meet payment for its scheduled maturities and in early 2003 their loans to BNDES entered in default (US$1.2 billion). After several months of negotiations with BNDES, a restructuring plan - a debt-for-equity deal - was proposed whereby a new holding company, Brasiliana Energia S.A., would comprise AES 50.01% of common shares and BNDES 49.99% common shares and non-voting preferred shares (resulting in BNDES holding 53.84% total equity of Brasiliana Energia S.A.). The agreement called for the transfer of AES' stakes in AES Uruguaiana, AES Tiete and Eletropaulo to the holding company Brasiliana Energia and an AES payment of US$90 million in cash upon signing the agreement. In December 2003, BNDES and AES group signed a restructuring agreement. The agreements foresees that AES Sul's stakes will be transfered to Brasiliana after a financial reestructuring of the company. In October 2016, CPFL Energia (controlled by the Chinese company State Grid) acquired AES Corporation's state in the project. AES Sul invested US$ 40 million in 1998, US$ 34.3 million in 1999, and US$ 34.9 million in 2000. In 2002 the company invested US$ 18.5 million (R$ 54.1 million) in its facilities.