Alto Maipo in Successful Voluntary Reorganization and Restructuring Under Chapter 11
May 26, 2022
Cleary Gottlieb has successfully represented Alto Maipo SpA (Alto Maipo) and Alto Maipo Delaware LLC (Alto Maipo Delaware; collectively, the debtors) through their voluntary reorganization and restructuring of debt under Chapter 11 protection in the United States.
Alto Maipo is a special purpose company, incorporated under Chilean law for the purpose of developing, constructing, and operating a hydroelectric energy project in the Santiago Metropolitan Region of Chile. The hydroelectric energy project commenced full commercial operations in April 2022 and now provides significant zero-emissions energy to Chile’s electric grid.
The debtors successfully negotiated and entered into a restructuring support agreement with a super-majority of their senior lenders, which facilitated their successful reorganization. The debtors also renegotiated several of their most critical construction contracts, thus facilitating the successful completion of the hydroelectric project on time and during the Chapter 11 process. The debtors also obtained exit financing and working capital facilities from their DIP lender as well as additional concessions that facilitated the unimpaired treatment of general unsecured claims.
The Bankruptcy Court entered an order confirming the debtors’ Chapter 11 Plan on May 13, 2022, over the objection of the Office of the United States Trustee. The restructuring transactions closed and the plan became effective on May 26, 2022.