Santiago, Chile – Czech renewable energy company Solek, which controls several solar parks in Chile, has requested a financial restructuring after suspending debt payments to the MW Investiční Fond Sicav fund. The company, led by businessman Zdeněk Sobotka, cited financial difficulties and regulatory uncertainty as key factors behind its decision.

Financial Struggles and Debt Issues

Solek, which operates the 95.2 MW Leyda Photovoltaic Park, faces liquidity problems and has defaulted on obligations amounting to $41.075 million. The company controls 49% of its Chilean subsidiary and has sought restructuring to secure additional capital.

The Chilean financial situation mirrors challenges in other markets where Solek operates, including Europe and Latin America. The firm has faced credit constraints and project delays, further exacerbating its financial troubles.

Regulatory Uncertainty in Chile

Solek attributes part of its difficulties to Chile’s evolving energy regulations. In particular, the expansion of distributed electricity generation and a proposed law affecting PMGD (Small Distributed Generation Projects) revenues have introduced uncertainty. The government’s shift in financing mechanisms and regulatory framework has impacted investor confidence.

“The changes proposed by authorities have generated market uncertainty, affecting stability and predictability,” the company stated.

Legal and Strategic Considerations

Solek filed for restructuring in a Czech court, aiming to stabilize operations while negotiating debt settlements. The legal outcome, expected within 60 days, will determine the future of its Chilean subsidiary. Meanwhile, Solek is reassessing its strategic approach in Chile, potentially leading to asset sales or partnerships to secure new funding.

The company remains operational but is closely monitoring regulatory developments. Its future in Chile will largely depend on the legal resolution and potential adjustments to its business model.

Source: PULSO