Oaktree Capital Management LP has entered the race to buy control of Renova Energia SA (RNEW11.SA) with a proposal that would inject fresh capital and help refinance part of the Brazilian renewable energy firm’s debt maturing this year, two people with direct knowledge of the plan said on Wednesday.

The people said Oaktree would pay 170 million reais ($51 million) for Light SA’s 16 percent stake in Renova and spend another 1.2 billion reais to dilute Renova’s controlling bloc. It also involves the refinancing of Renova bank loans maturing this year, freeing up collateral, the people said.

Los Angeles-based Oaktree [OAKCP.UL], the world’s biggest distressed debt investor, is competing with Brookfield Asset Management Inc (BAMa.TO) for Renova. Late on Tuesday, Renova confirmed a July 3 report by Reuters that Brookfield has made a non-binding proposal for control of the company.

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