Struggling Impsa to sell projects in Brazil and Uruguay

BRAZIL: In a bid to raise much needed cash to protect its operations in Argentina, Impsa has agreed to put its wind farms in Brazil and Uruguay up for sale, the company's CEO Luis Pescarmona said in a letter to employees reprinted in local media.

Impsa will sell projects in Brazil and Uruguay

"I can assure you that we have at no time considered selling the company. We are in the process of selling the wind farms in Uruguay and Brazil, which will provide financial resources to strengthen operations in our plants," the executive told workers.

The move follows the announcement by the company on 15 September that it would delay interest payments on all bonds and loans as a result of the financial squeeze due to late payment by major clients in Brazil and Venezuela.

Meanwhile, the engineering firm is continuing negotiations with the provincial and national governments for a plan to salvage its manufacturing operations and around 4,000 jobs in Argentina.

This could involve a cash injection into the company, or the Argentinean state taking over its debts. In addition, the government could send more orders to the engineering firm, a leading provider of wind and hydroelectric turbines.

Impsa operates 330MW of capacity in Brazil, and is building a further 470MW.