Mainstream Renewable Power has confirmed it has initiated Judicial Reorganisation Proceedings for Huemul Energía SpA and Condor Energía SpA, part of its 1400MW Andes Renovables wind and solar platform in Chile.
The company said it has begun the move, representing the next phase of the restructuring of the portfolio’s capital and debt, following a period of constructive engagement with lenders.
Mainstream stated the proceedings had been initiated to restructure the assets and capital structure, renegotiate the financial debts and allow for an injection of new capital into the Energía companies.
The proceedings are part of a comprehensive mitigation strategy put forward by Mainstream to ensure the long-term viability of the companies as a result of a series of distortions affecting the Chilean electricity market, which have resulted in financial losses to renewable energy oufits in the sector it said.
This week, the National Energy Commission issued approval of the early termination, due to force majeure, of the supply contracts of Huemul Energía SpA backed by the Ckhúri project.
Mainstream has been a pioneer of the renewables sector in Chile since 2008 it stated, having developed some of the country’s first large-scale renewable energy plants and with more than 1.1GW of assets currently under operation and 258MW in construction.
Mainstream said is still fully committed to Chile for the long-term and focused on bringing forward its pipeline of wind and solar projects to support the government in its ambitious decarbonisation programme.