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Anaergia sells Italian build-own-operate assets due to insufficient capital

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Anaergia has entered into inter-related agreements with entities managed by Arjun Infrastructure Partners (Arjun) to immediately terminate its obligations relating to approximately $145 million (€133.3 million) in loan obligations owing to Arjun.
The agreement includes a lender option to require purchase by Anaergia for the six build-own-operate assets in Italy.
This is under conditions that include a failure to secure senior debt financing for particular assets by a certain date, in exchange for the sale of approximately $55 million (€50.5 million) in inter-company loans (previously written off by Anaergia), as well as the equity interests in an Anaergia subsidiary that owns the assets to Arjun.
As a result of the transaction, Anaergia will receive de minimis cash consideration.
The move comes as Anaergia has determined that some of its projects require capital beyond amounts currently available to the organisation.
Anaergia did not have the ability to purchase the associated loans, so the Lender Option was exercised by Arjun.
Consequently, Arjun has acquired full ownership and control of the six build-own-operate facilities in Italy.
This will enable an opportunity for Arjun to fund the additional capital required for each asset to reach commercial operations.
“As part of the Company’s strategic review, it was determined that the best path forward was a consensual deal and arrangement with Arjun to help ensure the Projects reach commercial operations in a timely manner. The Transaction reduces our capital requirements and immediately helps improve liquidity for the Company,” said Brett Hodson, chief executive officer of Anaergia.
“We look forward to assisting Arjun and the Project teams to complete construction and further advance other business development opportunities in Italy.”






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