💥New Chapter 11 Bankruptcy Filing - Inversiones Latin America Power Ltda💥

Chilean solar power company kicks the can.

On November 30, 2023, Inversiones Latin America Power Ltda., San Juan S.A., and Norvind S.A. (collectively, the “debtors”) filed prepackaged chapter 11 bankruptcy cases in the Southern District of New York (Judge Mastando III).

Based in northern Chile, the debtors identify as a clean energy company primarily involved in wind generation; they have an aggregate installed capacity of 239.2 megawatts, stemming from two projects: the “San Juan Project” (193.2 MW) and the “Totaral Project” (46.0 MW).

The business model revolves around the generation of revenue via 15-year “take-and-pay” purchase agreements with distribution companies. The “take-and-pay” aspect simply means that the distribution companies are required to “take” a certain amount of electricity, and in return, they must “pay” a specified amount. Most of these agreements expire between ‘31 and ‘33. During the nine months ended Sep. 30, ‘23, these agreements accounted for approximately 95% of the debtors’ total revenue.