The takeover of Brazil's Grupo Rede Energia SA by rivals Equatorial Energia SA and CPFL Energia SA is unlikely to be hampered by opposition from foreign bondholders, several sources familiar with the matter told Reuters.

The bondholders are proposing a plan to restructure the debt of Grupo Rede and reduce the value of their shares by 85%.

Grupo Rede has been suffering from debts of more than 4 billion reais. Its dilemma becomes worse as eight of its units were seized by energy regulator Aneel in a bid to prevent it from ceasing electricity service in six states.

The sources added that bondholders may minimize losses if the buyout plan of the two rivals is completed.