Argentine Power-Plant Owner Stoneway Files Bankruptcy Over Nearly $1 Billion Debt

Stoneway Capital Ltd., the owner of four power plants in Argentina, filed for bankruptcy in New York on Wednesday after an Argentine Supreme Court ruling against the company prolonged the closure of one of its generation facilities, WSJ Pro Bankruptcy reported. Stoneway missed an interest payment on March 1, 2020, and soon after entered forbearance agreements with its creditors, according to a declaration filed in the U.S. Bankruptcy Court in New York by David Mack, Stoneway’s sole director. The company has struggled to meet its debt obligations and working capital needs and negotiated a debt restructuring to convert $271 million in loans to equity, according to a declaration by Mr. Mack. The proposal, however, fell through after an Argentine court ordered the company to shut down operations at its Matheu facility in March. The ruling followed a higher-court decision in December in favor of an environmental group that had been fighting the construction and operation of the plant since 2017, Mr. Mack said. Read more.