The Lupatech deal has been awarded the Latin Finance “Restructuring Deal of the Year 2014”. Tauil & Chequer Advogados in association with Mayer Brown LLP had an outstanding role in the deal representing The Bank of New York Mellon (as trustee and agent for the perpetual bond). With a cross-border perpetual bond and much of its debt to a small group of bank creditors, including BNDES, the Brazilian development bank, Lupatech decided to file a recuperação extrajudicial to restructure its bond debt, while restructure its remaining financial debt through an out-of-court workout. Upon court confirmation of the prepackplan in Brazil and of the Chapter 15 proceeding in the US, Lupatech managed to restructure its bond debt. Prepack deals have been used occasionally in other parts of Latin America, but Lupatech is the first large case and the most relevant precedent in Brazil.
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