Cemar has only 1 suitor

Brazilian firm SVM Participacoes e Empreendimentos, controlled by local fund GP Capital, is the only company that has pre-qualified to bid for Maranhao state power distributor Cemar, federal regulator Aneel said in statement. MT Baker Enterprise LLC of the US sent documentation, but the regulator said the proposal did not meet the financial, judicial and tax requirements set up for Cemar's auction. Proposals for Cemar must be submitted by December 1. In an attempt to make Cemar more attractive, federal electricity holding company Eletrobras may convert part of the debt owed by the utility into stock. Eletrobras is Cemar's biggest creditor. This is the second time the Brazilian government has tried to sell Cemar, a unit of US-based PPL. Two months ago, GP Capital dumped plans to acquire the utility after failing to reach a debt agreement with Eletrobras. Cemar, which is saddled with debts of some 800mn reais (US$279mn), came under the Aneel's administration after filing for bankruptcy protection in August last year. Cemar supplies electricity to 5.7 million residents in the northeastern state of Maranhao.