Albanesi Earnings Highlight Restructuring Challenges as Company Advances Debt Talks

The next steps in restructuring for Generación Mediterránea and its parent, Grupo Albanesi, are expected to involve a comprehensive proposal for both secured and unsecured creditors, sources said. While recent refinancing success in the project-finance bucket has provided some relief, the broader restructuring is likely to be complex and contentious, given the divergent interests of the creditor groups and the declining revenue profile of certain contracted assets after 2027, according to sources.

The restructuring is complicated by the company’s diverse creditor base and heavily fragmented debt structure. The 2031 notes, one of the main instruments of focus, are secured by power purchase agreements that provide about $80 million annually through 2027, before declining to roughly $30 million per year thereafter.

While bondholders holding a simple majority could accelerate the debt and enforce collateral, no such move has been made, sources said. Creditors have hesitated, as enforcement could derail restructuring discussions and potentially force Albanesi into a formal insolvency process, according to sources. Such a step could carry the additional risk of allowing Cammesa, Argentina’s wholesale electricity market operator, to terminate the company’s PPAs.

Consolidated net leverage was 7.7x as of the second quarter of 2025, down 0.9x from the prior quarter. As of June, consolidated financial debt stood at roughly $1.5 billion, divided into three main categories: $410 million in secured obligations, including the 2031 international bonds; $675 million in unsecured notes and loans; and about $450 million in nonrecourse project finance debt tied to the Ezeiza, Maranzana and Arroyo Seco plants.

In recent weeks, Albanesi secured a favorable outcome on the nonrecourse tranche, achieving more than 75% creditor approval to extend maturities across those project loans. The agreement, which included participation from state-controlled fund ANSES, was seen as a constructive step, freeing approximately $45 million per year in cash flow between 2026 and 2029. Analysts suggest that this liquidity, previously locked in the project structures, could now provide some support for servicing the new instruments likely to be proposed under the restructuring.

The company reported second-quarter 2025 EBITDA of $57 million, a 48% year-over-year increase. During the quarter, the company faced higher operating expenses and a delay in commissioning a 25 megawatt module at the Arroyo Seco plant, which eventually came on line in July. With that milestone, Albanesi has now completed a multiyear buildout program that added 483 MW through projects including the Ezeiza and Maranzana cycle closings, Arroyo Seco’s gas turbine and the launch of the Peru cogeneration facility. The end of this investment cycle is expected to reduce capital expenditures and support gradual deleveraging, sources said.

Beyond the debt situation, Albanesi continues to navigate potential regulatory penalties. The delays in commissioning some of its projects, including those tied to Cammesa contracts, may expose the company to as much as $30 million in penalties. Albanesi has not yet recognized these liabilities and is reportedly seeking waivers from the energy regulator, sources said.