Sabesp - Material Fact: Extension of Suspension of Cuts and Renegotiation of Debts

Rhea-AI Summary

Sabesp announced an extension of measures to mitigate the economic impacts of COVID-19 on its commercial customers, extending the suspension of service cuts and debt renegotiation until April 30, 2021. Key features include debt renegotiation without fines, a 12-month installment plan, and no credit protection listing until the end of April. Customers will also be removed from credit protection registers after debt renegotiation. The company emphasizes its commitment to supporting customers during these challenging times.

Positive

• Continued support for customers during COVID-19 through extended debt renegotiation measures.
• Suspension of service cuts benefits commercial clients, promoting customer retention.

Negative

• Potential short-term revenue impact due to the suspension of service cuts.

SÃO PAULO, March 16, 2021 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de 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, in continuity informs to its shareholders and the market in general that, in continuity with the Material Fact of February 3, 2021, informs its shareholders and the market in general that today, the Board of Executives Officers extended, from March 31 to April 30, 2021, the measures to minimize the economic impacts of the pandemic for commercial and service establishments, as follows:

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 be until the end of April 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 the end of 
     April 2021; and

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      pandemic will be withdrawn immediately after the debt is renegotiated with Sabesp.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 Material Fact.

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-extension-of-suspension-of-cuts-and-renegotiation-of-debts-301248925.html

SOURCE Sabesp

FAQ

What measures has Sabesp extended to support customers during COVID-19?

Sabesp has extended the suspension of service cuts and debt renegotiation for commercial customers until April 30, 2021.

How will Sabesp's debt renegotiation process work?

The debt renegotiation process will involve no fines or interest, with a 12-month installment plan and monetary adjustments based on the company’s policy.

Will customers be affected by credit protection listings during the suspension?

No, customers will not be included in credit protection listings until the end of April 2021, and those listed will be removed upon successful debt renegotiation.

What is the timeline for these measures announced by Sabesp?

The measures are effective until April 30, 2021, as part of the company's response to the COVID-19 pandemic.

How does this PR impact Sabesp's stock symbol SBS?

The measures aim to protect customer revenue streams during the pandemic, which could have implications for SBS stock performance.