We advised Cerberus as one of the largest senior lenders to Alto Maipo

Davis Polk served as counsel to Cerberus South American Investments, LLC, on behalf of certain funds and accounts managed, or advised, by it and its affiliates and its and their respective direct and indirect subsidiaries (collectively, “Cerberus”), in connection with the chapter 11 proceedings filed by Alto Maipo SpA and Alto Maipo Delaware LLC (collectively, “Alto Maipo”) on November 17, 2021, in the United States Bankruptcy Court for the District of Delaware.

On May 13, 2022, the Bankruptcy Court confirmed Alto Maipo’s chapter 11 plan. The plan provides for the restructuring of over $2 billion in prepetition senior secured obligations, as contemplated by the court-approved restructuring support agreement among Alto Maipo, AES Andes S.A. (sponsor), AES Chile SpA and approximately 85% (by amount) of holders of senior secured obligations, including Cerberus. Under the confirmed plan, holders of senior secured obligations will receive their pro rata share of $1.05 billion of first-lien loans or notes and $993.7 million second-lien loans, exchangeable for notes in the future. Alto Maipo emerged from bankruptcy on May 26, 2022.

Alto Maipo is a special purpose company, incorporated under Chilean law for the purpose of developing, constructing and operating a hydroelectric energy project in the Santiago Metropolitan Region of Chile. The hydroelectric energy project, which began construction in 2013, reached commercial operations during the pendency of the chapter 11 cases. The project consists of two run-of-river hydroelectric plants that, after nearly a decade of construction, are now providing significant zero-emissions renewable energy to Chile’s electric grid.

The Davis Polk restructuring team included partner Brian M. Resnick and associates Richard J. Steinberg and Mariya Dekhtyar. Partner William A. Curran and associate Bradford Sherman provided tax advice. Partner Elliot Moskowitz provided litigation advice. All members of the Davis Polk team are based in the New York office.

Copy link to share post