CORPORATE REORGANIZATION AND BANKRUPTCY
The corporate reorganization and bankruptcy area of our law firm has experience in private corporate reorganizations, bankruptcy proceedings and corporate liquidations, as well as private agreements with creditors and the acquisition and sale of debt involved in insolvency of bankruptcy proceedings. Our lawyers complement their practice with vast professional experience, offering our clients coherent and innovative solutions; combining financial, bankruptcy, corporate, banking, tax and labor regulations for comprehensive solutions.
Regarding financial reorganization proceedings, our practice includes counseling on bankruptcy proceedings before the National Institute for the Defense of Competition and Protection of Intellectual Property (INDECOPI), as well as private proceedings where INDECOPI is not involved. Our practice is aimed towards counseling debtors and creditors in the reorganization process of liabilities of distressed companies. This is done through accurate and satisfactory counseling, emphasizing such solutions to the nature of the corporate crisis involved.
Our firm has experience on issues such as challenging Board of Creditors Meeting agreements, credit recognition and challenging the latter.
It is worth mentioning that several mandatory administrative precedents (Precedentes de Observancia Obligatoria) before INDECOPI regarding bankruptcy and insolvency proceedings, under which INDECOPI has issued verdict on, have been filed by the legal defense strategy of our lawyers.
ADVICE TO CORPORACIÓN HAYDUK
Multiple corporate reorganization, which simultaneously entailed (i) the first successful exit of a local company from an insolvency proceedings in Peru (approximately USD 70 million), (ii) the granting of a syndicated financing of USD 100 million, (iii ) the purchase of the Pesquera Garrido company and (iv) various spin-offs and mergers to consolidate into a single business all fishing units, plants and vessels that the shareholders held in various companies, thus achieving various efficiencies and consolidating the Corporation.
ADVICE TO ABENGOA PERÚ S.A.
Private restructuring of its financial debt of approximately USD 30’000.00000. Abengoa Peru is a subsidiary of the Abengoa Group (Spain), which due to the management of the centralized cash of all the group’s companies by the parent company and the financial crisis of the latter, which caused it to enter a pre-bankruptcy procedure in Spain. Due to this, Abengoa Peru was left without sufficient liquidity to continue its operations and fulfill its financial commitments and obligations to its suppliers. In order to avoid falling into an insolvency situation, Abengoa Peru negotiated individual restructuring agreements with its main suppliers and financial creditors. Once in a second stage, the reestructuring allowed the entry of a foreign investment fund which acquired the main financial claims and contributed working capital for the continuity of operations.
ADVICE TO AUTOMOTORES GILDEMEISTER SPA AND ITS PERUVIAN SUBSIDIARIES
Private restructuring of their bonds under New York law and the constitution of local guarantees. Said restructuring took place in the Prepackaged Chapter 11 framework, carried out before the Bankruptcy Court of the State of New York. The restructuring follows two previous private restructurings of the bonds and fiduciary guarantees granted in Peru. The process included the preventive advice of the Peruvian subsidiaries regarding the possible effects and consequences that could be generated by the entry of its parent company to a bankruptcy process under American regulations, including the care of the subsidiaries’ management bodies vis-à-vis their different interest groups.
ADVICE TO THE BANCO INTERNACIONAL DEL PERU S.A. (INTERBANK), CHUBB PERU S.A. COMPAÑÍA DE SEGUROS Y REASEGUROS, AVLA PERÚ COMPAÑÍA DE SEGUROS E INSUR S.A. COMPAÑÍA DE SEGUROS (THE GUARANTORS)
Granting of loans in favor of Ingenieros Civiles y Contractors Generales S.A. (ICCGSA), a company that is currently under an ordinary bankruptcy procedure followed under the General Law of the Bankruptcy System. The granting of the loans was given so that the bankrupt company could go forth and complete the execution of its construction projects with the State. The loans had, among others, flow trust guarantees that would allow the proper use of the funds for each of the financed projects.
ADVICE TO OBRAS DE INGENIERÍA S.A.C. (OBRAINSA)
Preventive Bankruptcy Procedure. On the occasion of the investigations generated by the cases of Lava Jato and the Construction Club, OBRAINSA was affected in its operations, which is why, in order to prevent its insolvency, it resorted to a preventive bankruptcy procedure, negotiating with its main creditors, where there were bondholders, suppliers and work consortiums, a restructuring agreement that includes the execution of various business units via corporate reorganizations, all of which was reflected in the Global Agreement for the Refinancing of obligations, approved by the Company’s Creditors’ Meeting. The restructuring liabilities were approximately S / 373’000,000.00.
ADVICE TO GYM S.A. (NOW CALLED CUMBRA PERÚ S.A.)
Private restructuring of its debt with suppliers through its exchange for bonds of up to USD 70’000,000.00. The purpose of the issuance of these bonds was to replace various commercial debt of Cumbra Peru S.A., derived from the execution of a few projects whose performance could not be completed due to disputes with clients. And so, Cumbra Peru consolidated the payment terms of the commercial debt that it had with various suppliers, standardizing their cancellation conditions and thus generating efficiencies in its administration, substituting a short-term debt over a medium-term debt and creating negotiable securities for its business creditors.
ADVICE TO COMPAÑÍA PERUANA DE RADIODIFUSIÓN S.A. (CPR)
Ordinary Bankruptcy Proceedings for Asset Restructuring, restructuring approximately USD 100,000,000.00 through a payment structure that provided for the patrimonial reorganization along with the recapitalization of the company charged to the bankruptcy liabilities themselves. Thanks to the good management of the company, the patriomonial reorganization plan was accelerated, culminating the reestructuring and achieving the cancelation of the debt in a lesser number of years than the initial approved Reestructuring Plan predicted, for which the advice included the modification of the plan and final conclusion of the bankruptcy process.
ADVICE TO SAN FERNANDO S.A.
Private restructuring of its financial debt with a local bank syndicate. The operation involved the negotiation and modification of the terms and conditions of the syndicated loan, as well as the participation of Credicorp Capital Servicios Financieros as its structuring agent.
Advising Maple Biocombustibles SRL and Maple Etanol SRL (companies of the Maple Group based in Ireland and the United Kingdom)
Insolvency proceedings. The advice included the negotiation of the liquidation and relocation of assets of the brankrupt companies with their main syndicated financial creditors, in order to maximize the amortization value of the syndicated financial debt.
ADVICE TO BANK OF AMERICA
Inter-relationships that occurred in Chapter 11 of the companies of China Fishery’s shareholders, one of the main fishing groups in Peru, along with the attempt of these companies to enter bankruptcy proceedings in Peru and that they be recognized under Chapter 13, procedures that ultimately did not prosper.