Empresa Distribuidora de Electricidad de Mendoza

Distressed

Empresa Distribuidora de Electricidad de Mendoza (Edemsa) was split from the integrated provincial utility Empresa Mendozina de Servicios Electricos (EMSE), which is retaining ownership of the utility's 67 MW of generating assets. In 1998 Edemsa supplied 80% of the energy consumed (through 732 km long high tension transmission lines) in the Mendoza Province to 286,000 customers. Edemsa was privatized by the government of Mendoza province on June 13, 1998 when its 51% stake was bought by a group led by Electricite de France International. This group submitted the highest bid of $US 237.77 million. The group of EdF International, Saur International and Medinvert (local Argentinean manufacturer) won a 30-year concession for Edemsa's service area. They committed to pay off $US 13 million of Edemsa's debt. In July 2000, Edemsa issued a US$ 82 million one year bond. In 2003 Edemsa had defaulted on some of its debts with private lenders as a result of the mandated tariff freeze of January 2002. In 2003, Edemsa's shareholders filed a claim against the Argentinean government with an international arbitration tribunal (International Centre for Settlement of Investment Disputes - ICSID). The companies claim compensation for the losses caused by the devaluation of the Argentinean currency (peso) and the conversion of dollar-denominated tariffs into pesos. In March 2005, Medinvert, formally known as IADESA, purchased Electricite de France (EdF's) 51% share in Edemsa. Edemsa had 310,000 clients in 2005. In 2007, Andes Energia PLC signed an agreement to increase its share in SODEMSA which replaced IADESA as the new majority holding company of Edemsa. As a result Andes Energia PLC increased its indirect holding in Edemsa to 51%. Andes Energia was the new name of Ragusa Capital after September 2007. For updates on the international arbitration proceedings, check : www.worldbank.org/icsid (case n. ARB/03/23). Edf is no longer a shareholder... still distressed?? http://www.andesenergiaplc.com.ar/?Financial%20Reports

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