AES Andes Leads Chile Stock Losses After Unit Files Chapter 11

AES Andes SA fell the most among major Chilean stocks as one of its hydroelectric units filed for bankruptcy protection in a U.S. after a series of cost overruns and delays.

Shares in the Santiago-based company slumped as much as 5.6% Wednesday after Alto Maipo filed for Chapter 11 in a Delaware court following a preliminary agreement with creditors. In a filing, AES Andes said it will cease to control the company and will book a $1.1 billion accounting loss in the fourth quarter.

That’s about how much AES Andes has spent on the troubled 531-megawatt run-of-the-river project in ...