Hernández & Cía. (Peru), Dechert LLP (USA), Prieto (Chile), Ferrere (Uruguay), Batalla (Costa Rica) and Pinheiro Neto (Brazil) advised several global investment firms (Elliott Management, Bain Capital, Monarch and others), in connection with the restructuring plan of Gildemeister (insolvency proceedings in the State of New York (USA) under Chapter 11 of the U.S. Bankruptcy Code) and the takeover of the Gildemeister group’s shares.
The Gildemeister group is one of the leaders in the import, marketing and distribution of vehicles in Latin America, representing a diverse portfolio of brands including Hyundai and Mini Cooper, which includes commercial cars, motorcycles, SUVs, trucks and buses.
The Gildemeister group carries out import and distribution operations in Chile and Peru and is also active in the main areas of the economic activity in Chile by distributing equipment for construction, agriculture and the industry.
Our advisory included, in a single large transaction, several specific capital markets, financial, restructuring and M&A transactions. That is, in detail: (i) the corporate restructuring of the Gildemeister group, whereby certain creditors of Gildemeister (mainly Elliott Management and Bain Capital) took indirect shareholding control by means of the capitalization of part of Gildemeister’s existing debt for approximately US$558 million, turning said creditors into shareholders of more than 77% of the group´s new holding company incorporated in the United States; (ii) the issuance of, inter alia, new senior notes in the amount of US$ 32’048,432. 00 and new junior notes in the amount of US$ 248,806,189.00, under New York law, in order to refinance Gildemeister’s existing debt; and (iii) the negotiation of a new security package granted by the Gildemeister group to its creditors in order to secure the obligations arising from the senior and junior notes referred to above. In addition, our advice also involved the corporate restructuring of the Peruvian entities, mainly consisting in the recomposition of the board of directors and in the modification of certain aspects of their bylaws.
Both the senior notes and the junior notes are secured by a security package constituted over various assets of the Gildemeister group in Chile, Peru, Uruguay, Costa Rica and Brazil.
Our advisory included, in a single large transaction, several specific capital markets, financial, restructuring and M&A transactions.
