TPG Opportunities Partners is pushing a restructuring proposal for debt-laden company Alinta Energy, The Australian reports.
The TPG fund is believed to have joined forces with other lenders to draft a plan to revive Alinta as a single entity - a plan which would rest on the company's ongoing asset sale process failing to deliver value above the current debt burden of $2.6 billion in senior loans, the newspaper said.
The restructure plan is understood to be in its very early stages, and parties involved in the process are believed to include GDF Suez, BHP Billiton and Origin Energy.
The proposed debt-for-equity swap could deliver a certain future for Alinta, formerly known as Babcock and Brown Power.
TPG Opportunities Partners is a major holder of Alinta's debt after acquiring shares in the secondary market, and according to sources holds as much as $500 million of the company's debt.
AEJ Price at posting:
6.2¢ Sentiment: ST Buy Disclosure: Held
