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 Parnaàƒba basin in Brazil’s northeast.