Cleary acts on in-court restructuring of ILAP
Cleary Gottlieb has acted as counsel to bondholders in the restructuring of more than $430 million of Inversiones Latin America Power’s (ILAP) existing senior debt.
The voluntary restructuring was implemented through a pre-packaged Chapter 11 plan filed by ILAP with the US Bankruptcy Court for the Southern District of New York on 30 November 2023, and the plan of reorganisation was approved on 3 January 2024.
The firm advised in the US the ad hoc group of holders of over 80% of ILAP’s 5.125% senior secured notes due 2033.
The restructuring consisted of the issuance of senior secured notes and convertible notes. In addition, some members of the ad hoc group provided exit financing in exchange for super senior notes. All new notes mature in 2033, and the convertible notes will 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: (1) a 193.2 MW facility located in Freirina, Vallenar, in the Atacama region, the second largest wind farm project by capacity in Chile, and (2) a 46 MW facility located in Canela, in the Coquimbo region.
Cleary’s restructuring team was led by partners Richard Cooper (pictured left), Adam Brenneman (pictured centre), and Thomas Kessler (pictured right), and included associates Brad Lenox, Ashley Miller, and Nicholas Koeppen, and international lawyers Alejandro Araujo Gaviria, Juan Ignacio Leguizamo, and Ethan Singer. Partner Matt Brigham, associate Samuel Kramer, and law clerk Abdel Rodriguez advised on tax matters. Counsel emerita Sandy Rocks and senior attorney Victor Chiu advised on security interest matters. All lawyers are based in New York.
