Brazil WPE selling some assets to resolve cash problems
Aug 8, 2014 - Brazilian wind power firm Wind Power Energia (WPE) said Friday it is selling some of its wind farm assets to overcome limited liquidity.
The company, which is also a wind turbine supplier, said its liquidity problems were caused by delayed income from supply contracts for projects developed as part of Brazil's renewables incentive programme Proinfa. Delays of over 30 months affected the customers' cash flow and their suppliers and increased WPE's short-term debt and financial costs.
On Wednesday, WPE was informed of a court decision declaring the company in bankruptcy on a request from Libra Terminal Valongo. However, WPE had already reached an agreement with Libra Terminal and asked the court to revoke the decision.
Previously run by Argentine engineering company Industrias Metalurgicas Pescarmona (Impsa), WPE is now controlled by Luxembourg-based holding Venti SA after a corporate restructuring. Venti controls both WPE and Impsa.
Brazil has been a key market for Impsa which has installed manufacturing facilities in Pernambuco state for wind turbines and hydropower equipment.
Diana Hristova is our expert for Latin America. She has spent several years following the diverse industries in the region, the energy sector most of all. Now Diana is exploring Latin America’s huge wind, solar, geothermal and hydropower potential.