3 days ago
IG4 Capital in talks to invest in Brazil's Rio Alto Energias, say sources
SAO PAULO, May 28 (Reuters) - A new fund managed by private equity firm IG4 Capital is in advanced talks with creditors of Brazilian renewable power company Rio Alto Energias Renovaveis ( opens new tab to restructure and invest in its operations, two people familiar with the deal said.
Rio Alto, which builds and runs solar energy projects, has a portfolio of more than 1.8 GW in assets operating or under development, but has been struggling to avoid bankruptcy court.
In February, the company requested a legal order temporarily halting creditor actions, as it seeks to restructure its debt.
Rio Alto and IG4 declined to comment on the matter.
One person familiar with the talks said that if the deal is completed, it will represent the first investment from IG4's Fund III (ZBGBAX.O), opens new tab, which has already raised some $200 million in capital.
The deal would involve restructuring about 1.5 billion reais ($260 million) of debt and injecting some 300 million reais of fresh capital, the person said.
IG4 is not the only potential buyer for Rio Alto, but it is well-positioned to move ahead with the deal, according to another person with knowledge of the transaction. The firm was co-founded by Paulo Mattos, a former GP Investments ( opens new tab executive, who was also a director at Brazilian development bank BNDES.
($1 = 5.69 Brazilian reais)
