Eletrobras Faces U.S. Delisting as It Assesses Losses From Graft

Centrais Eletricas Brasileiras SA, the Brazilian state-run utility ensnared in the nation’s sweeping corruption investigation, said its U.S.-traded shares are at risk of being delisted because it still can’t put a price-tag on losses it had from graft.

Eletrobras, which has delayed its 2014 annual report to the U.S. Securities and Exchange Commission three times already, said it doesn’t yet know if it will meet its next deadline to submit the documents on May 18, according to a statement sent to Brazil’s securities regulator late Wednesday. The company’s internal investigation into corruption allegations uncovered as part of a federal criminal probe aren’t yet complete, it said.

KPMG LLP has repeatedly refused to approve the 2014 full annual report until the utility known as Eletrobras can say what losses the company had after builders on several key projects admitted to inflating contracts and paying kickbacks, a person close to the matter said last month. The company declined to comment on that report.

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