Eletropaulo Metropolitana de Eletricidade

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State-owned giant utility Eletropaulo's distribution business was disbundled into two separate companies: Metropolitana, covering the city of Sao Paulo and Bandeirante, in the interior of the state. Eletropaulo Metropolitana is the largest electricity distributor in Latin America serving 4.3m customers in 24 towns, including the city of Sao Paulo and the ABC industrial region. The Rio de Janeiro based electric company Light, through its wholly owned subsidiary Light Gas, as the sole contender, acquired 30.9% share capital (77,88% voting stake) of Eletropaulo Metropolitana for the minimum price of US$ 1.78 million on April 15, 1998. Light's deal was 100% financed by Brazil's National Development Bank and a consortium of commercial banks: City Bank, Merrill Lynch, Societe Generale, and Deuche Morgan Grenfell. Eletropaulo Metropolitana and Bandeirante will be supplied with power under contract with Furnas, CESP, Itaipu, and EMAE. In Jan. 2000, AES purchased 43.05% of Eletropaulo's shares from the Brazilian state-owned bank BNDES for US$ 1.1 billion to be paid in four instalments over the next three years (the first instalment of US$ 201 million will be paid with AES own resources, while the remaining US$ 900 million will come from loans from BNDES). In early 2000, Eletropaulo issued US$ 476 million debentures; in Sep. 2000, the company issued an additional US$ 50 million Euro commercial paper to roll over part of its debt and received US$ 225 million in loans syndicated by JP Morgan. In Jan. 2001, Eletropaulo was awarded an additional US$ 350 million in loans, this time syndicated by the Bank of Boston. All these external resources have been used to restructure Eletropaulo's debts and to finance its investment expenditures. As of July 2001 Electropaulo was under the sole management control of AES. The deal disentangled the 1998 ownership structure. In addition, in April of 2002 AES restructured financing related to Electropaulo. Under the terms of the agreement, BNDES agreed to defer a $170 million payment due on April 15, 2002 for the acquisition of common shares of Electropaulo. 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 also called for the transfer of AES' stakes in the generation facilities AES Tiete and AES Uruguaiana 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 and the transfer of corporate control of Eletropaulo to the holding Brasiliana was expected to happen in early 2004. At the time of the signature of the agreement, AES had 69% of Eletropaulo's total capital (77.81% of the voting capital). AES also restructured its outstanding debt with its commercial lenders in 2003 and was expecting a confirmation of the restructuring in early 2004. The restructuring included creating of a holding company for the assets of Metropolitano and two additional AES projects - AES Tiete and AES Uruguiana. Under the agreement, BNDES assumed US$869 of AES debt in the projects in exchange for additional project share. The holding company, Brasiliana, created is split between AES (50.1 percent) and BNDES (49.9 percent). In 2009, AES Eletropaulo raised a total of US$ 292.8 million (BRL 585.6 million) in loans from Bradesco to finance its past due debts with federal government taxes. In February 2015, BNDES granted a US$ 20.9 million (BRL 62.3 million) loan to Eletropaulo to finance the company's investment in