Case | HBS Case Collection | February 2007 (Revised June 2009)

Edelnor (A)

by Jordan I. Siegel

Abstract

Fernando del Sol, president of F. S. Inversiones in Chile, had just bought himself a headache as a New Year's present. On December 31, 2001, he purchased a Chilean electricity generation and transmission company called Edelnor that was in danger of becoming insolvent within months. del Sol had six months to restructure the company before it would become completely insolvent, and his headache was compounded by the fact that the process for company reorganization in Chile typically dragged on in the courts, often for two or more years. Any debtor, no matter how small, could hold up the process at any point by issuing written complaints to the court. del Sol needed to figure out whether the company was worth saving, whether it had a business strategy that could succeed if the company's debt was restructured, and whether he could find some means of saving the company in time.

Keywords: Restructuring; Insolvency and Bankruptcy; Investment; Courts and Trials; Business Strategy; Energy Industry; Chile;

Citation:

Siegel, Jordan I. "Edelnor (A)." Harvard Business School Case 707-473, February 2007. (Revised June 2009.)