Rio Alto Energias Renováveis Files for New Out-of-Court Restructuring

Rio Alto Energias Renováveis announced the start of a new out-of-court restructuring process. This move follows the judiciary's decision to reject the plans previously submitted by the company.

The main goal is to settle unsecured debts. The company intends to standardize payment terms for all creditors involved in the process. There will be no distinction between financial and non-financial debts.

The company filed the request with the 2nd Bankruptcy and Judicial Recovery Court in São Paulo. The decision to pursue a new legal path came after the failure to have previous plans ratified.

Rio Alto attributes part of its financial difficulties to the effects of mandatory cuts in renewable energy generation. The sector faces operational challenges that directly impact the organization's cash flow.