SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of January, 2021
Commission File Number 1-34129
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
(Exact name of registrant as specified in its charter)
BRAZILIAN ELECTRIC POWER COMPANY
(Translation of Registrant's name into English)
Rua da Quitanda, 196 – 24th floor,
Centro, CEP 20091-005,
Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
RELEVANT FACT
CENTRAIS ELÉTRICAS BRASILEIRAS S/A
CNPJ: 00.001.180/0001-26 | NIRE: 533.0000085-9
PUBLICLY-HELD COMPANY
Centrais Elétricas Brasileiras S/A (“Companhia” or “Eletrobras”) (B3: ELET3, ELET5 & ELET6; NYSE: EBR & EBR.B; LATIBEX: XELT.O & XELT.B), in light of the disclosure by the media today, informs its shareholders and the market in general of the dismissal of the motion for clarification filed by Eletrobras in the case No. 0023102- 98.1990.8.19.0001, which is under judgment by the 14th Civil Court of the District of Rio de Janeiro, filed by Gerdau S/A (“Plaintiff”) and other creditors of the Compulsory Electric Power Loan (“ECE”).
The case is currently in the execution of sentence phase, after the submission of an accounting report which reviewed the tax contribution period and the ECE credits involved in the Plaintiff's request. The expert report submitted the sum of approximately R$1.3 billion and was ratified by the judge in a sentence against which Eletrobras filed a motion for clarification.
In the motion, Eletrobras argues that the claims arising between 1988 and 1994, relating to the 3rd conversion meeting, cannot be executed in this case since the Plaintiff filed the lawsuit before the meeting. In addition, Eletrobras contests the inclusion of credits belonging to the creditors' affiliates, which had not been listed in the initial legal petition, and to companies that came to be merged only after the allocation of the case to the judge.
In all of the aforementioned arguments, the Company's thesis lies in procedural legislation, which imposes clear limits on changes to the initial legal petition for the claim after the adverse party's summons and, for this reason, the case cannot cover the financial statements for the period ended on September 30, 2020.
The Company informs that it will continue to litigate, through appropriate appeals, and has not yet been summoned to provide the payment discussed in the case. The Company will adopt the necessary remedies to seek full acceptance of its claims and to correct the sums in question by reducing them.
The Company will keep the market informed on the subject in question.
Rio de Janeiro, January 24, 2021.
Elvira Cavalcanti Presta
Chief Financial and Investor Relations Officer
This document may contain estimates and projections that are not statements of events in the past, but reflect our management's beliefs and expectations and may constitute estimates and projections about future events in accordance with 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", "may", "esteem", "continue", "anticipate", "intend", "wait" and the like are intended to identify estimates that necessarily involve risks and uncertainties, known or not. 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 the value of the Real, changes in volumes and patterns of electricity use by consumer, competitive conditions, our level of indebtedness, the possibility of receiving payments related to our receivables, changes in the levels of rain and water 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 the CVM and SEC. Estimates and projections refer only to the date they were expressed and we assume no obligation to update any of these estimates or projections due to the occurrence of new information or future events. The future results of the Companies' operations and initiatives may differ from current expectations and the investor should not rely exclusively on the information contained herein. This material contains calculations that may not reflect accurate results due to rounding.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: January 24, 2021
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS | ||
By: | /S/ Elvira Baracuhy Cavalcanti Presta | |
Elvira Baracuhy Cavalcanti Presta CFO and Investor Relations Officer |
FORWARD-LOOKING STATEMENTS
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.