Pérez Alati, Grondona, Benites & Arntsen advised a majority group of holders (the "Ad-Hoc Committee") of the convertible subordinated notes, denominated in dollars, issued by TGLT S.A. ("TGLT" or the "Company", and the "Convertible Notes", respectively) and Zang, Bergel & Viñes Abogados advised IRSA Propiedades Comerciales S.A. (“IRSA”) as holder of the Convertible Notes, in analyzing, preparing, structuring and implementing of recapitalization plan of TGLT pursuant to which the Company issued new shares of Class A Preferred Stock for a total aggregate amount of US$39,033,842 and new shares of Class B Preferred Stock for a total aggregate amount of US$140,796,732 (the " Recapitalization of TGLT").
The Recapitalization of TGLT has involved (i) the negotiation and execution of a recapitalization support agreement and an interest deferral agreement between the Company and a substantial majority of holders of the Convertible Notes, as well as an option agreement for the issuance of complementary preferred stock and subscription agreements whereby certain holders committed their participation in the offering; and (ii) the management of the public offering process for the subscription of its Class A Preferred Stock, and the public offering to exchange the Convertible Notes and ordinary shares of TGLT for its Class B Preferred Stock.
The Recapitalization of TGLT consisted of a highly complex legal and financial process that has allowed the Company to: (i) obtain a significant reduction in financial liabilities in foreign currency; (ii) rebuild its net worth; (iii) implement a capital structure according to the magnitude of its operations; and (iv) have greater capital resources to develop its business activities.
In addition, Pérez Alati, Grondona, Benites & Arntsen as advisors to the Ad-Hoc Committee, has participated together with the Company in the execution of certain agreements entered into by TGLT with: (i) Banco Itaú Argentina S.A. and Banco Itaú Uruguay S.A., for the granting of certain credit facilities and/or bank guarantees for a total amount equivalent to US$ 27,600 to be applied for covering certain financial obligations due in the short term; and (ii) holders of more than 80% of the principal amount outstanding of Series XV Notes of TGLT (the “Series XV Notes”), whereby such holders have given their preliminary consent to support and participate in a potential re-profiling plan and/or exchange of the Series XV Notes, which will allow the Company to improve its financial profile through the extension of its securities maturity terms.
Counsel to Ad-Hoc Comittee
External local counsel:
Pérez Alati, Grondona, Benites & Arntsen: Partner Diego Serrano Redonnet and associates Danilo Parodi Logioco, Guido O. Meirovich and Paula Balbi.
U.S. external counsel:
Simpson Thacher & Bartlett LLP: Partner Todd Crider and associates Alejandro De Ramon-Laca, Kirsten L. Davis and Pablo Richards.
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