Alto Maipo in Voluntary Reorganization and Restructuring

November 22, 2021

Cleary Gottlieb is representing Alto Maipo SpA (“Alto Maipo”) and Alto Maipo Delaware LLC (“Alto Maipo Delaware” and, together with Alto Maipo, the “Debtors”) in the voluntary reorganization and restructuring of their 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 (the “Project”) that is presently under construction will consist of two run-of-river hydroelectric plants which, once completed, will provide significant zero-emissions energy to Chile’s electric grid.

Since Alto Maipo began construction on its hydroelectric energy project, changes in the energy market and changes in the hydrology of the region have caused the capital structure of the Debtors to become unsustainable. Under the Chapter 11 reorganization process, the Debtors will have the opportunity to right-size their debt and equity structure to preserve and maximize value for the benefit of stakeholders in anticipation of completing construction of the Project and commencing commercial operations.

The Debtors filed their Chapter 11 petitions and first day pleadings in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) on November 17, 2021. The restructuring is proceeding on a pre-arranged basis, with approximately 55% of the Debtors’ senior lenders having signed restructuring support agreements prior to the Chapter 11 filing. The Debtors are in active discussions with the remaining senior lenders.

The Debtors have secured post-petition financing from their ultimate parent corporation, AES Andes S.A., which has agreed to provide up to $50 million in debtor-in-possession financing.

The Bankruptcy Court held first day hearings for the Debtors on November 18, 2021, and November 22, 2021, during which it granted all of the Debtors’ requested first day relief. The Bankruptcy Court scheduled its second-day hearing for December 20, 2021.

For more information, please see the press release here.