Saudi Arabia’s ACWA Power announced that it and its subsidiaries have reached an agreement to restructure the debt and ownership in Turkey’s ACWA Gok, a company indirectly partly owned by ACWA Power.
“ACWA Power and its relevant subsidiaries have reached an agreement with the principal lenders and minority shareholders of ACWA JOC whereby the outstanding loans, in accordance with the terms of the shareholders’ agreement and the conversion conditions, will be converted into equity in ACWA JOC,” the company said in a statement to the Saudi stock market on Sunday.
The disclosure indicated that ACWA JOC is “the project company of the Kirikkale Combined Cycle Gas Plant with a production capacity of 950 megawatts.”
ACWA Power said in a statement to the Saudi stock market that one of its wholly-owned subsidiaries will pay the lenders $132.4 million “as compensation for the conversion of the loan dues... in installments over three years.”
ACWA Power indicated that it “signed a set of agreements to complete the transaction on Friday, August 9.” The disclosure stated that the transaction is expected to result in ACWA JOC being freed from “commercial debts to third parties... and ACWA JOC remaining classified as an existing investor On the shares of ACWA Power.
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