Sabesp - Material Fact: Suspension of Cuts and Renegotiation of Commercial Customer Debts

On February 3, 2021, Sabesp announced measures to support customers affected by the COVID-19 pandemic.

Rhea-AI Summary

On February 3, 2021, Sabesp announced measures to support customers affected by the COVID-19 pandemic. The company will suspend service cuts and renegotiate debts for customers in orange and red phases until March 31, 2021. Debts will be renegotiated without fines or interest, only monetary adjustments. The installment term is set for 12 months from the negotiation date. Additionally, customers will not be registered in the credit protection registry until March 31, and any previous registrations will be canceled upon debt renegotiation.

Positive

• Support for customers during the pandemic through debt renegotiation.
• No fines or interest applied during the renegotiation period.
• Customer protection by suspending cuts in services.

Negative

• None.

Argus Session date unavailable

-4.10% session move Open Argus

Details

News Market Reaction – SBS

The recorded move for SBS in the trading session of this news was -4.10%.

Data tracked by StockTitan Argus. Session date unavailable.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

SÃO PAULO, Feb. 3, 2021 /PRNewswire/ -- Basic Sanitation Company of the State of São Paulo - Sabesp ("Sabesp" or "Company"), in compliance with the provisions of Article 157, Paragraph 4, of Law 6.404 / 76 and the provisions of Instruction 358 of the Brazilian Securities and Exchange Commission ("CVM"), dated January 3, 2002, as amended, informs to its shareholders and the market in general that, in a meeting held this morning, the Executive Board approved:

i)  Suspend cuts and renegotiate debts for commercial and service customers residing in the operated municipalities that are in the orange and red phases of the São Paulo / COVID-19 Plan;

ii)  The validity period will run from February 03, 2021 until March 31, 2021;

iii)  The existing debts, including the agreements signed during the pandemic period, will be renegotiated without the application of a fine and interest, only monetary adjustment, according to the Company's policy and procedure;

iv)  The term for installments will be 12 months, from the date of the renegotiation of outstanding balances;

v)  The debtor will not be included in the credit protection register for debts until March 31, 2021;

vi)  Debtors which may have been included in the credit protection register during the pandemic will be withdrawn immediately after the debt is renegotiated with Sabesp.

The Company will keep the market informed on the developments concerning this matter.

IR Contacts:
Mario Arruda Sampaio – (55 11) 3388-8664 (maasampaio@sabesp.com.br)
Angela Beatriz Airoldi – (55 11) 3388-8793 (abairoldi@sabesp.com.br)

View original content:http://www.prnewswire.com/news-releases/sabesp--material-fact-suspension-of-cuts-and-renegotiation-of-commercial-customer-debts-301221835.html

SOURCE Sabesp

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What measures did Sabesp announce on February 3, 2021?

Sabesp announced the suspension of service cuts and a debt renegotiation plan for customers affected by COVID-19.

What is the duration of Sabesp's debt renegotiation plan?

The debt renegotiation plan is valid from February 3, 2021, until March 31, 2021.

Are there any fees associated with Sabesp's debt renegotiation?

There are no fines or interest charges; only monetary adjustments will apply.

How long can customers repay their renegotiated debts with Sabesp?

The repayment term for renegotiated debts is 12 months from the date of negotiation.

Will customers be included in the credit protection register during the negotiations?

Customers will not be included in the credit protection register until March 31, 2021.