Inversiones Latin America Power’s Prepackaged In-Court Restructuring

Cleary Gottlieb represented an ad hoc group of holders of over 80% of Inversiones Latin America Power SpA (ILAP)’s 5.125% senior secured notes due 2033 in ILAP’s prepackaged in-court restructuring.

On January 12, 2024, ILAP and its subsidiaries consummated the restructuring of more than $430 million of its existing senior debt. The voluntary restructuring was implemented through a prepackaged Chapter 11 plan filed by ILAP in the U.S. Bankruptcy Court for the Southern District of New York on November 30, 2023, and the plan of reorganization was approved on January 3, 2024.

The restructuring involved the issuance of take-back senior secured notes and convertible notes. In addition, certain ad hoc group members provided exit financing in return for super-priority notes. All of the new notes mature in 2033, and the convertible notes will either be converted into equity of ILAP’s direct parent or redeemed in connection with a sale of ILAP.

ILAP 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.