The Federal Court (STF) resumes this Thursday the trial which analyzes the agreement concluded between the union and the company Axia (formerly Eletrobras) to, among other issues, increase the participation of the federal government in the company’s board of directors.
- Approval: The government awaits the STF’s decision to move forward with a 2.4 billion reais operation and provide aid to Eletronuclear
- See also: STF analyzes an agreement increasing the State’s stake in Axia
The analysis of the file was interrupted at the beginning of December, because Minister Luiz Fux was absent and the six votes to consolidate the majority were not obtained. Five ministers voted to fully approve the deal, while four defended partial validation.
The session should resume this Thursday with Fux’s vote.
The agreement was concluded in the first half of the year, after more than a year of negotiations. The government obtained the right to appoint three of the ten members of the board of directors and one of the five members of the Budget Council.
- FGTS-Eletrobras: shareholders will also benefit from Axia Energia dividends
In return, Axia redefined its obligations towards Eletronuclear. The company is no longer obliged to invest in the construction of the Angra 3 nuclear power plant, if the government decides to complete the work. However, the company remains obliged to financially support the Angra 1 nuclear power plant.
This point has become the main fact of uncertainty for Eletronuclear. The public company is awaiting the decision allowing the issuance of debentures of 2.4 billion reais, an operation considered by the government as the only immediate way to replenish the company’s cash flow.
The company faces cash flow difficulties to finance actions related to extending the useful life of Angra 1, a project considered strategic to keep the plant in operation for the next 20 years.
- Costs: Copom maintains Selic at 15% and avoids indicating the start of cuts
The assessment within the government is that approval of the deal, even partial, would pave the way for the issuance of bonds. Technicians say, however, that restricted validation can make it difficult to execute financial points, reducing the legal security of the operation and further delaying the influx of resources.
Debentures are debt securities issued by companies to raise funds, functioning as a loan that the investor gives to the company, thereby becoming a creditor.
About The Author
