- Sale of ‘brownfield’ lines is pending talks with creditors
- Firm also said near sale of solar power unit for $132 million
Grupo Isolux Corsan SA, the Spanish engineering company going through a financial restructuring, is close to a sale of some of its Brazilian power lines to Brookfield Asset Management Inc., people familiar with the matter said.
The so-called brownfield portion of the power-line business will be sold pending talks this week between Isolux and its creditors, said the person, who asked not to be identified because the deliberations are private. The company is also close to selling its solar-power business Grupo T-Solar Global SA for about 120 million euros ($132 million) to another bidder, the person said.
Representatives for Isolux and Toronto-based Brookfield declined to comment. The Expansion newspaper had previously reported the talks for the solar business.
Selling assets is a cornerstone of Isolux’s restructuring plans as it seeks to reduce debt, built up after years of international expansion. Last year, Isolux scrapped plans for an initial public offering to help raise funds, saying it would wait for more favorable market conditions.
Earlier this month, Isolux signed an agreement with its core creditors that includes the injection of 200 million euros to help it avoid insolvency. The agreement requires the approval of at least 75 percent of creditors. The company has gotten 50 percent of creditors on board with the plan so far, and plans to apply to obtain approval for the restructuring plan from a Spanish court by the end of next week, a separate person familiar with the matter said.
The company has 4,703 kilometers of high-voltage electricity lines under concession in Brazil, including 1,191 kilometers in the Amazon, according to its website.