A team of attorneys from law firm Greenberg Traurig represented Chilean renewable energy company Inversiones Latin America Power (ILAP) in its comprehensive financial restructuring implemented through a pre-packaged plan of reorganization in a Chapter 11 bankruptcy proceeding. Greenberg Traurig first assisted ILAP in securing a forbearance and standstill agreement with its bondholders in early July 2023, which was subsequently extended. The forbearance provided ILAP with the opportunity to negotiate and agree with the bondholders on the terms of the restructuring transaction.
Greenberg Traurig’s attorneys then negotiated the terms of the company’s restructuring support agreement, which was executed on Oct. 30, 2023, by ILAP, its two operating subsidiary guarantors that operate wind farms and the ad hoc group of bondholders. The RSA provided key terms and conditions that would govern ILAP’s Chapter 11 cases as well as its Chapter 11 plan of reorganization. On Nov. 29, 2023, ILAP’s sole creditor under a letter of credit facility agreed to join the RSA. ILAP filed for bankruptcy protection the following day in the U.S. Bankruptcy Court for the Southern District of New York with the RSA in place, which provided enough creditor support for a consensual Chapter 11 plan to be confirmed. On Jan. 3, U.S. Bankruptcy Judge John P. Mastando III confirmed ILAP’s Chapter 11 plan and approved its disclosure statement. On Jan. 12, ILAP’s Chapter 11 plan became effective and it emerged from the bankruptcy process as a reorganized company.
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 the sale of ILAP.
“Our relationship with ILAP, which began in 2017 with a private placement of debt securities, runs deep. We are extremely pleased to have been able to assist ILAP in this successful debt restructuring and look forward to continuing our work with ILAP and its sponsors in the future,” Marc M. Rossell, co-chair of Greenberg Traurig’s Latin America practice, said.
“We saw an overwhelming amount of creditor support and an uncontested plan, which allowed the court proceedings to move very quickly,” Oscar N. Pinkas, chair of Greenberg Traurig’s New York restructuring & bankruptcy practice, said. “Congratulations to the entire Greenberg Traurig team for working together to complete this significant restructuring.”
Greenberg Traurig’s restructuring and bankruptcy team was led by Pinkas with support from Nathan Haynes, Brian E. Greer and J. Gregory Milmoe (shareholders), Leo Muchnik (of counsel), and Sara A. Hoffman, Emily D. Nasir and Jessica M. Wolfert (associates).
The capital markets, corporate, and finance portions of the restructuring were handled by Rossell alongside Oscar Stephens and Jared A. Hershberg (shareholders) and Marc Ochs and Igal Rojzman (associates).