Description: Bankruptcy proceeding filed by company constructing a run-of-river hydroelectric project in Chile, citing significant impacts of climate change on amount of power that can be produced.
In re Alto Maipo Delaware LLC
Filing Date Type File Action Taken Summary 11/17/2021 Declaration Download Declaration filed in support of Chapter 11 petitions and first day motions. Company Constructing Hydroelectric Facility in Chile Cited Climate Change as Factor in Bankruptcy Filing. On November 17, 2021, a company constructing a large run-of-river hydroelectric project in the Andes Mountains in Chile filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in bankruptcy court in Delaware. The Board President and Chief Restructuring Office explained in a supporting declaration that “significant shifts both on the supply and demand side” had “rendered [the companies’] existing capital structure unsustainable.” On the demand side, he cited low electricity prices due to increased generation capacity. On the supply side, he said that “climate change has significantly impacted the hydrology of the Maipo Valley, where the Project is being constructed, and lower precipitation levels reduce in turn the amount of power that the Project can produce.”