Dec 2023
A Conyers team of Alan Dickson, Jonathon Milne, Nick Ward and Mauricio Da Rocha is working alongside Cleary Gottlieb in the representation of an ad hoc group of holders comprising more than US$328 million (or more than 80%) of the 5.125% senior secured notes due 2033 issued by Inversiones Latin America Power Limitada (Issuer) and its subsidiaries in a voluntary restructuring through a Chapter 11 plan in the United States.
This restructuring process and related plan of reorganisation is expected to significantly de-lever the Issuer. At high level, the Issuer alongside its subsidiaries and an affiliate (including a newly incorporated Cayman Islands exempted company) will issue senior secured notes and convertible notes in satisfaction of existing notes and obligations and raise exit financing from the sale of super-priority notes.
The Issuer is a Chilean renewable energy company that owns and operates two wind farm projects in Chile: a 193.2 MW facility located in Freirina, Vallenar in the Atacama region, the second-largest wind farm project by capacity in Chile, and a 46 MW facility located in Canela, in the Coquimbo region. After recognising its inability to service its existing secured debt, the Issuer and note holders commenced negotiations designed to arrive at a consensual debt restructuring, culminating in the agreed plan of reorganisation. The debtors filed their Chapter 11 petitions and first day pleadings in the U.S. Bankruptcy Court for the Southern District of New York on November 30, 2023.
The transaction is once again shining a light on the flexibility of Cayman Islands law to facilitate cross-border restructurings and meet creditor and corporate needs in a nimble and commercially friendly manner.