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MARKET ANNOUNCEMENT
CENTRAIS ELÉTRICAS BRASILEIRAS S/A
CNPJ: 00.001.180/0001-26 | NIRE: 533.0000085-9
PUBLIC COMPANY
Centrais Elétricas Brasileiras S/A (“Company” or “Eletrobras”) (B3: ELET3, ELET5 & ELET6; NYSE: EBR & EBR.B; LATIBEX: XELT.O & XELT.B) hereby informs its shareholders and the market in general, that, the judgment of Special Appeals (“Recursos Especiais”) 1583323 and 1576254 was restarted by the Superior Court ("STJ"), which deals with Eletrobras' redress lawsuits against the Federal Government, with a view to recognizing the Federal Government joint and several obligation for payments which have been carried out by Eletrobras, as a judicial conviction, in legal proceedings that discuss the difference in interest of monetary update of the Electric Energy Compulsory Loan.
The trial was suspended again with votes of 2 ministers against the thesis of the Company and 1 in favor. There are still 6 ministers to vote, besides the minister who presided the session, who only votes in case of a tie. Ministers who voted contrary to Eletrobras understood that the Federal Government would only have responsibility for payment in case Eletrobras is unable to pay.
At the session held on June 13, 2018, the representative of the Federal Public Prosecutor, present at the beginning of the trial of the appeal object of this announcement, was in favor of Eletrobras' thesis, in the sense of understanding that the Federal Government is jointly and severally responsibility to Eletrobras for the compulsory loan credits.
The Company maintains a provision of approximately R$ 18.2 billion on September 30, 2018, and through the highlighted appeals seeks the joint and several liability of the Federal Government for 50% (fifty percent) of its judicial convictions, as provided for in art. 4, paragraph 3, of Law 4,156/62, which ensured the Federal Government joint and several responsibility for the amounts taken as Compulsory Loan of Electric Energy.
Notwithstanding Eletrobras' understanding, the estimated amount of the responsibility of the Federal Government relating to the liability in question is not considered as a reduction in the Company's provision, since the present trial has not yet been concluded.
The Company will keep the market informed about the lawsuit in question.
Rio de Janeiro, March 13, 2019.
Elvira Baracuhy Cavalcanti Presta
CFO and Investor Relations Officer
This document may contain estimates and forecasts that are not statements of fact that occurred in the past but reflect our management beliefs and expectations and may constitute future events' forecasts and estimates under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The words "believe", "may", "estimate", "continue", "anticipate", "intend", "expect" and related words are intended to identify estimates that necessarily involve risks and uncertainties, known or unknown . Known risks and uncertainties include, but are not limited to: general economic, regulatory, political and commercial conditions in Brazil and abroad, changes in interest rates, inflation and value of the Real, changes in volumes and the pattern of use of electricity by consumer, competitive conditions, our level of indebtedness, the possibility of receiving payments related to our receivables, changes in rainfall and water levels in the reservoirs used to operate our hydroelectric plants, our financing and capital investment plans, existing and future government regulations , and other risks described in our annual report and other documents filed with CVM and SEC. Estimates and forecasts refer only to the date they were expressed and we assume no obligation to update any of these estimates or forecasts due to the occurrence of new information or future events. Future results of the Company's operations and initiatives may differ from current expectations and the investor should not rely solely on the information contained herein. This material contains calculations that may not reflect accurate results due to rounding.
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS | ||
By: |
/S/ Elvira Baracuhy Cavalcanti Presta
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Elvira Baracuhy Cavalcanti Presta
CFO and Investor Relations Officer |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.