AES Andes informs on the reorganization process requested by Alto Maipo

- The financial reorganization of the AES Andes subsidiary is supported by its creditors.

- To date, AES Andes has fulfilled all of its capital commitments with Alto Maipo by contributing more than US $ 1 billion to the project. 

Santiago, November 17, 2021.- Alto Maipo SpA, the developer of the Alto Maipo Hydroelectric Project (PHAM), and subsidiary of AES Andes, after reaching a restructuring pre-agreement with its creditors (“Pre-Arranged” modality), has requested to adhere to Chapter 11 of Title 11 of the United States Code, with the objective of starting a process of financial reorganization. With this, Alto Maipo seeks to create a sustainable capital structure in the long term, maximizing the recovery for all its creditors.  

As a result of this process, in accordance with the provisions of the International Financial Reporting Standards, AES Andes will deconsolidate the subsidiary Alto Maipo SpA from its financial statements and will recognize a net loss of approximately US $ 1.1 billion on its Income Statement for the fourth quarter of 2021. 

With regards to cash generation, AES Andes does not plan to receive material dividends from Alto Maipo. Likewise, Alto Maipo's financial debt is non-recourse to AES Andes. 

AES Andes has contributed US $ 1,016 million to Alto Maipo for the construction and development of the renewable project to date. This amount includes the last contribution of US $46 million made in October of this year, thus fulfilling all of AES Andes’ equity contribution commitments.

Since the launch of its Greentegra strategy in 2018, which aims to accelerate a safer and more sustainable energy future, the company has signed contracts for supply with renewable sources for 10.5 TWh per year. In terms of capacity the Company is adding over 2,400MW of renewable and battery capacity to its portfolio. It has added 305 MW already and currently has 1,114 MW under construction, including Alto Maipo. 

AES Andes remains committed to the development of renewable projects in Chile and is contributing to the sustainable reactivation with investments close to US $ 3 billion, generating more than 7 thousand direct jobs in the markets in which it is present.