Guerrero Olivos advised Towerbank International Inc. in the negotiation and structuring of a financing granted to Krah América Latina S.A., with the joint and several guarantee of Montajes Industriales Montec S.A., for the maximum amount of USD 3,500,000, which was divided into two tranches: one for the purchase and sale of an industrial ship and the purchase and installation of equipment to manufacture geosynthetic products at the facilities of Krah América Latina S.A., and the other to finance the purchase of raw materials. This financing involved the granting of Chilean guarantees to secure the obligations of Krah América Latina S.A. under the same.
For these purposes, we also participated in the preparation of the corporate authorizations of Krah América Latina S.A. and Montajes Industriales Montec S.A. for the execution of the relevant documentation.
Additionally, we advised Towerbank International Inc. in the request for the first and second disbursement against the financing granted, for USD 800,000 and USD 500,000 respectively, which involved the preparation of the corresponding promissory notes to document the debt and the issuance of legal opinions regarding the legal capacity of the companies and their legal representatives to execute the necessary documents, and the validity and enforceability of the Chilean securities.
This transaction had the typical complexities of those involving parties from different countries of origin, since our work was essential to translate the commercial agreement between the parties into the documents executed under Chilean law.