UPDATE 1-Brazilian judge overturns injunction blocking meeting ahead of Eletrobras privatization

(Recasts with injunction overturned)

RIO DE JANEIRO, June 6 (Reuters) - A Brazilian judge on Monday overturned an injunction that was blocking Eletrobras from holding a meeting at its subsidiary Furnas, seen as key to the state-run power company's privatization, according to a decision seen by Reuters.

At the meeting, which was originally scheduled for Monday morning, debenture holders of Furnas are set to vote on a waiver for Furnas to make an additional investment in its Santo Antonio hydropower plant.

Such a step must be completed prior to the share offering that would privatize Latin America's largest utility, according to its preliminary prospectus.

A judge from the Court of Justice of Rio de Janeiro state had granted an injunction on Sunday to suspend the meeting after a request by Furnas employees, who claimed that a 681 million-real ($143 million) investment announced by the company in Santo Antonio prior to the meeting violated corporate governance rules.

However, the president of the same court on Monday decided to overturn the injunction, saying the move to block the meeting would cause a significant impact on Brazil's electricity system.

"There is no doubt that maintaining the effectiveness of the original decisum would cause immense administrative and financial turmoil," judge Henrique Carlos de Andrade Figueira said in his decision.

Centrais Eletricas Brasileiras SA, as Eletrobras is formally known, had said in a securities filing on Sunday it was working to overturn the injunction.

Brazil's government, which currently holds 72% of Eletrobras' common shares, plans to price on June 9 an offering of mainly new shares that would dilute its stake to 45%, in what may be President Jair Bolsonaro's last chance for a major privatization before October elections.

The transaction is expected to reach 35.18 billion reais. ($1 = 4.7760 reais) (Reporting by Rodrigo Viga Gaier; Writing by Gabriel Araujo; Editing by Emelia Sithole-Matarise and Angus MacSwan)