AES Transgas fails to make payment to BNDES

Chicago, March 3 - AES Corp. said that its AES Transgas Empreendimentos Ltda. subsidiary failed to make a payment of $330 million due to the Brazil National Bank for Economic and Social Development (BNDES).

As a result of the failure to pay, BNDES has the right to call due $605 million of outstanding debt.

The money was due in payment for preferred shares of Eletropaulo Metropolitana Eletricidade de Sao Paulo SA, the electric distribution company serving Sao Paulo, Brazil.

AES noted that all other former holders of Eletropaulo preferred shares accepted an offer to defer until April 15 AES Transgas' payment of $6.5 million.

The $611.5 million of outstanding debt owed by AES Transgas to BNDES and others is secured by the preferred shares of Eletropaulo owned by AES Transgas.

AES is an Arlington, Va.-based power company.

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