On Friday, June 28, Latin America Power (whose shareholders are BTG Pactual and Patria Investments) agreed to sell their subsidiaries San Juan and Norvind, both operators of NCRE wind power generation plants with an installed capacity of 193.2 MW and 46 MW, respectively. The price of the transaction raised to USD $401 million, and its closing was tied to the conditions that are usually stipulated for this type of operations.

The transaction was challenging, considering that LAP emerged from a reorganization under Chapter 11 of the U.S. bankruptcy laws a few months ago, after an arduous negotiation with its bondholders. In this context, they agreed the sale of the company, which required a series of conditions to be met in order to achieve the sale agreement, and imposed that the sale must be coordinated with the prepayment in full of secured and convertible bond lines.

The sale remained dependent on the authorization of the National Economic Prosecutor's Office (Fiscalía Nacional Económica).

The transaction was led by the partners Jorge Vigil on M&A aspects, Fernando Barros Vial on corporate and financing matters, José Manuel Bustamante on antitrust matters and Pilar González on tax matters. Senior associate Josefina Castro led the team on its various fronts. LAP was also advised by Greenberg Traurig LLP in the USA and Ogier in the Cayman Islands.

Colbún was represented by Barros & Errázuriz as Chilean counsels and Sullivan & Cromwell as its US counsels, Cleary Gottlieb as counsel to the bondholders and Alston & Bird as counsel to the bank representing the bondholders.