Impsa’s wind power declared in bankruptcy in Brazil

Pernambuco state judge Rafael Jose de Menezes declared Wind Power Energy in bankruptcy in response to requests from two creditors, Libra Terminal Valongo SA and Libra Terminais SA, which said the company hadn’t paid debts of 10.6 million reais ($4.7 million), according to a July 30 ruling on the court’s website.

Judge Menezes appointed Jose Azevedo Neto to oversee the bankruptcy process. The company will have to identify all of creditors and the full amount owed.

Mendoza, Argentina-based Impsa said earlier this year it’s seeking to sell assets to cut debt. The company, which has 330 megawatts of wind farms in operation in Brazil and 480 megawatts under construction, is the third-biggest producer of wind energy in Brazil with a market share of 6.4 percent, according to Bloomberg New Energy Finance. Wind turbines account for 90 percent of its revenue.

Impsa was a week late on a debt service payment in June. It said the payment was delayed “for administrative reasons” in a filing with the Buenos Aires stock exchange. That prompted Fitch to downgrade the company to CCC, eight levels below investment grade, from B+, the highest non-investment-grade rating.