Chivor SA, a Colombian unit of the power producer AES Corp., filed for bankruptcy protection in New York as part of an effort to restructure $336 million in loans.
Chivor is seeking approval from US Bankruptcy Judge Burton Lifland for a “prepackaged” Chapter 11 reorganization plan, court papers show. In such a case, a company gets the support from most of its creditors for a recovery plan before filing for bankruptcy.
Chivor, Colombia's fourth-largest power generator, defaulted in December on a final $336 million payment due on a $400 million loan. The company has secured agreements with all but one of its 21 lenders to extend the repayment period through the end of 2006, court papers said. Chivor listed $588.6 million in assets and $349.3 million in liabilities in its filing.
“At present, (Chivor) has insufficient funds to pay all amounts due and payable under the existing credit agreement,” Chivor said in papers filed in US Bankruptcy Court in New York.