Brazil generator Eneva files for bankruptcy

The announcement came as the company suspended payments related to its $890 million debt, Eneva said in a statement

Brazilian generator Eneva has requested bankruptcy protection after failing to strike a debt restructuring deal with creditors, according to Business News Americas.

The announcement came as the company suspended payments related to its $890 million debt, Eneva said in a statement.

"[This] aims to preserve adequate cash flow to continue the company's operations, which have shown continued improvement," the Rio de Janeiro-based firm said.

The company said it plans to submit a judicial recovery plan within 60 days of the filing's acceptance.

Once a part of Eike Batista's EBX empire, Eneva is now controlled by Germany's E.On.

Eneva operates seven thermoelectric power plants and has a stake in onshore gas blocks in the Parnaíba basin in Brazil's northeast.

More in Line Construction & Maintenance