(Bloomberg) -- Chilean renewable-energy generator ILAP filed for bankruptcy in the US with plans to restructure more than $400 million of debt.
ILAP and two affiliates filed Chapter 11 petitions in New York on Thursday, court papers show. The filing lets ILAP keep operating while it seeks a judge’s approval of its restructuring plan.
The utility has struck a deal with most key creditors to swap some existing debt for new notes and leave other creditors unimpaired, Chief Executive Officer Esteban Moraga Morales said in a sworn statement.
ILAP owns wind power generation plants in northern Chile with a capacity of almost 240 megawatts. A push for clean energy by the Chilean government has swamped the sector with projects, straining transmission infrastructure and lowering prices, Morales said.
The plans to seek Chapter 11 bankruptcy were previously disclosed.
The case is Inversiones Latin America Power Ltda., 23-11891, US Bankruptcy Court for the Southern District of New York (Manhattan).
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