The rating on Chilean electric generator Empresa Eléctrica del Norte Grande S.A. (Edelnor) reflects its limited financial flexibility and weak financial performance, which resulted from a Chapter 11 Reorganization process that ended on Nov. 5, 2002. As a result of the reorganization, Edelnor's US$340 million defaulted bank debt, due in 2005 and 2006, was replaced by US$217 million, 15-year new debt certificates and a US$46 million shareholder loan, resulting in a US$58 million debt reduction and a significant extension on the duration of its financial obligations. As required by the reorganization plan, Inversiones Mejillones S.A (owned by Belgium's Tractebel S.A. and Chilean copper producer Corporacion Nacional del Cobre de Chile) exercised a call option over an 82.34% controlling equity stake
