TozziniFreire was the recipient of the Latin Lawyer Deal of the Year 2015 award in the “Restructuring” category for its assistance to Brookfield in the restructuring of a Brazilian multinational conglomerate debt.
The case is considered innovative because it involves a proposal to finance the distressed company from the beginning of the process (“DIP Financing”), the concession of judicially authorized guarantees, proposals with credit and/or cash, sale of assets and restructuring of debts as a solution for the company’s crisis. In this new precedent, the approved plan authorized the financer and specific creditors to anticipate the value of their bids in a competitive process for the judicial sale of assets, guaranteeing a minimum value to attract proposals for the acquisition of assets in benefit of the maintenance of the company and payment of creditors (“stalking-horse”). Another highlight of the deal is the fact that the recovery plan approved by creditors granted the direct financer the right to cover offers that would be presented in the competitive process under certain conditions.
The work was coordinated by partners in the Restructuring and Insolvency practice, Fabio Rosas and Luciana Faria Nogueira, with the participation of several other lawyers in the practice.
For more information, please visit http://tozf.re/1jj.