February 19, 2016 / 4:50 PM / in 2 years

UPDATE 1-Brazil eyes Abengoa intervention after default, papers say

(Adds comments from Abengoa, ministry)

SAO PAULO, Feb 19 (Reuters) - Brazil’s government is studying the option of intervening in Spanish multinational Abengoa SA, after the company failed to honor 375 million reais ($93 million) it owed to investment bank Grupo BTG Pactual SA, newspapers said on Friday.

Electricity regulator Aneel and the energy ministry are concerned a possible bankruptcy filing could slow efforts to pass off transmission projects crucial to the national grid, reported Valor Economico, citing unnamed officials.

Abengoa may also pose a risk to Brazilian banks including BTG Pactual, which sued Abengoa after it defaulted on 375 million reais due last month, Estado de S. Paulo reported, without saying how it obtained the information.

BTG had loaned the Spanish company 300 million reais ($75 million) to build a line linking the massive Belo Monte hydroelectric dam to nearby states, according to O Estado.

“The matter is still being studied,” wrote energy ministry’s press office when asked about the reports, adding that officials had heard from “several entrepreneurs interested in Abengoa’s operations and projects in the country.”

Abengoa said in a statement that it was “in constant contact with local authorities, seeking a solution for the company’s projects under development in the country.”

A representatives for BTG Pactual and Aneel declined to comment immediately on the report.

$1 = 4.04 Brazilian reais Reporting by Brad Haynes, Guillermo Parra-Bernal and Luciano Costa Editing by W Simon and Meredith Mazzilli

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