Renewables firm Inversiones Latin America Power Limitada (ILAP) has opened talks with bondholders after failing to make loan payments earlier this week, becoming the latest wind farm operator in Chile to face financial difficulties.
The two sides have signed a standstill and forbearance agreement with bondholders representing more than 75% of the amount outstanding. The agreement means that the creditors will take no enforcement actions following the default while they evaluate options to resolve ILAP's liquidity problems.
“The purpose of the agreement is to allow the company and its creditors more time to discuss and explore comprehensive alternatives to address the company’s current liquidity situation and explore their strategic options,” ILAP stated.
Created in 2011, ILAP owns the 193.3MW San Juan and 46MW Totoral wind farms in northern Chile as well as hydroelectric plants in Chile and Peru.
ILAP added that it is also evaluating potential investments from its current owners.
The company is the latest renewables firm to slide into financial difficulties in Chile as limited transmission capacity, low spot prices and high fuel prices squeeze margins.
Since last September, three companies have withdrawn from the spot power market citing economic problems while Aker Horizons wrote down the value of Mainstream Renewable Power’s Chilean operations by €360 million earlier this year.
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