U.S. Markets closed

Brazil cancels Abengoa's power transmission licenses -official

SAO PAULO, Sept 20 (Reuters) - Brazil's Mines and Energy Ministry has canceled nine licenses to build transmission lines that had been granted to Spain's Abengoa SA after the company abandoned construction works in 2015, a senior official said on Wednesday.

The decision formalizing cancellation of the licenses was published in the Wednesday edition of the official gazette. The cancellation will not exempt the company from paying legal fines related to projects, according to the decision.

The company did not have an immediate comment on the cancellation of the licenses.

Abengoa halted construction of the transmission lines amid a financial crisis at its headquarters in Spain which was followed by a bankruptcy filing of its unit in Brazil.

Electricity regulator Aneel had been trying since to revoke the licenses granted to Abengoa and offer the project to another investor.

But Abengoa won court rulings allowing it to keep the assets and sell them as its Brazilian unit tries to emerge from bankruptcy protection.

(Reporting by Luciano Costa; Writing by Ana Mano; editing by Diane Craft)