Manufacturas de Caucho Rivera. Judicial Approval of Reorganization Plan.
Guerrero Olivos assists Manufacturas de Caucho Rivera Limitada, a local rubber manufacturing company, as Debtor Company, in a restructuring process and extrajudicial reorganization plan which was first successfully approved by the creditors, avoiding bankruptcy process, and now judicially approved by a Santiago Civil Court. With this approval the reorganization plan is enforceable against creditors.
Our insolvency and restructuring group was in charge of the whole process including the negotiation with creditors of the plan and its approval before our Civil Courts.
Relevance to this assistance is that this extrajudicial reorganization or simplified plan is the third agreement of this kind judicially approved by a Civil Court, since the new Insolvency Law Act was approved, three years ago. This procedure has been used only four times with one case in which the simplified process was rejected.
As stated before, this assistance is very relevant due that it is the third of this kind judicially approved by a Civil Court, since the new Insolvency Act was approved, three years ago. These kind of reorganization plans must be executed by public deed, approved by at least 75% of all credits and finally by a Civil Court. In this particular case, our insolvency and restructuring group was in charge of the negotiation with several financing institutions including Banco Security and AVLA, suppliers, etc.
Also, complexity to this assistance is that the plan was first objected by Banco de Chile as creditor and our group obtained the rejection of their position before the Civil Court.
Counsel to Manufacturas de Caucho Rivera: Guerrero Olivos
Senior associates Sergio Yávar and Tomás Kubick
Capital Trust as financial advisor
USD3.1 million approximately