The Globe and Mail reports in its Thursday edition that
Grupo Isolux Corsan SA, the Spanish engineering company
going through a financial restructuring,
is close to a sale of some of its Brazilian power
lines to Brookfield Asset Management. A Bloomberg dispatch to The Globe says the so-called
brownfield portion of the power-line business will be
sold pending talks this week
between Isolux and its creditors. The company
is also close to selling its
solar-power business Grupo T-Solar Global SA for about
120 million euros to another bidder. Selling assets is a cornerstone of Isolux's restructuring
plans as it seeks to reduce debt, built up after years of international
expansion. Last year, Isolux scrapped plans for
an initial public offering to
help raise funds, saying it
would wait for more favourable
market conditions. Earlier this month, Isolux
signed an agreement with its
core creditors that includes the
injection of 200 million euros to
help it avoid insolvency. The
agreement requires the approval
of at least 75 per cent of creditors by July 23. The company has 4,703 kilometres
of high-voltage electricity
lines under concession in Brazil, including 1,191 kilometres
in the Amazon.
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