This article reviews the most noteworthy features of the restructuring and insolvency legal framework in USA, with particular regard to recent developments.
By Anna J. Park
Mirae Asset is facing the potential loss of a huge sum of the principal put in its overseas investment in the Frontera gas-fired power plant project, as the Texan plant owner filed for bankruptcy earlier this month.
Earlier, Mirae Asset Financial Group s three affiliates and the Korean Teachers Credit Union (KTCU) jointly decided in 2018 to invest a total of 160 billion won ($144 million) ― 80 billion won each ― providing senior secured debt loans to the natural gas plant that sells its electricity to Mexico.
Back then, the investment had been considered stable and profitable, as global asset manager Blackstone Group owned 100 percent equity of the plant operator, Frontera Generation Holdings. It was the first overseas infrastructure investment by the KTCU, the manager of teachers pension funds.