Court accepts RJ from Tradener and prevents termination of contracts

The Paraná Court granted a series of protection measures to Tradener in the company's judicial recovery and created a provisional shield against contract terminations, early maturities, execution of guarantees and zeroing of positions in the CCEE (Electric Energy Trading Chamber).

CNN reported exclusively that Tradener filed a request for judicial recovery involving liabilities of R$1.69 billion. This Friday's decision (22) was given by the 2nd Bankruptcy and Judicial Recovery Court of Curitiba and recognizes that energy purchase and sale contracts and their respective registrations with the CCEE are essential elements for the operational continuity of the supplier.

In practice, the decision prevents creditors, suppliers, financial institutions and market counterparties from automatically dismantling the company's operations due to the financial crisis and the request for judicial recovery.

The company attributes the crisis to structural changes in the free energy market, such as the advance of the hourly PLD, high volatility, mismatches between load and generation curves, growth in solar generation, generation cuts (curtailment) and decoupling between submarkets.

The company states that the settlement model began to generate severe losses even in situations in which there was sufficient global volume of energy to honor contracts, due to time and regional differences between the purchase and sale of energy.

The companies mentioned in the contract portfolio include Elera, CGN, NEC, CEI, Eneva, Furnas, EDP Trading, Statkraft, Safira, Raízen Power and Lightcom.

Source: CNN