Banks Cut Credit To Brazil's Celpa
Banks began cutting access to credit to debt-laden Brazilian electricity distributor Celpa following news reports that its parent company, Grupo Rede Energia, was up for sale, the company's largest shareholder said on Tuesday, Reuters reported. Celpa filed last week for bankruptcy protection in a Brazilian court, citing a "very difficult financial and economic situation." Celpa's access to credit has dropped dramatically since November, when news of Grupo Rede's sale first arose, Jorge Queiroz Jr., who owns 54 percent of Rede, told regulators at a hearing. Read more.