In re Alto Maipo Delaware LLC

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.”