• Only two new co-ops signed during August and September
• 2026 co-op count reaches 37 across Europe and North America
• Latin America records second co-op of the year

Activity around cooperation agreements (“co-ops”) ground to a halt over the summer after a blistering first half of the year. Only two new co-ops were signed during August and September, bringing the year-to-date total for Europe and North America to 37.

As of end-September, there were 10 active co-ops in Europe and 40 in North America, according to Debtwire data. Additionally, there were two active co-ops in Latin America.

International developments

The popularity of co-ops as a creditor defensive tool has seen their usage spread internationally. In June, for example, an offshore noteholder group of Chinese real estate developer and toll road investor Road King Infrastructure unsuccessfully proposed a co-op. On 15 September, Debtwire reported that a group of Braskem creditors signed a co-op. The group includes holders of the Brazilian petrochemicals firm’s international and domestic bonds and certain holders of its revolving credit facility.

Braskem is the second Latin American co-op this year. Creditors holding a majority of Ambipar’s bonds had signed a co-op to coordinate strategy, local news outlet Valor Economico reported on 29 January. The group of creditors to the Brazilian environmental and emergency services company is advised by Padis Advogados, Ferro Castro, Davis Polk and Houlihan Lokey.

Active North American co-ops
Only one new North American co-op was signed in September. Creditors of Canadian nickel and cobalt producer Sherritt International Corporation announced on 8 September that they had entered into a co-op. The co-op is among holders of Sherritt’s 9.25% senior second lien secured notes due 30 November 2031 and controls more than 50% of the outstanding notes. The co-op is led by Kyma Capital, which is also a significant shareholder in Sherritt.

One co-op was removed from the tracker after Oldcastle BuildingEnvelope completed a debt restructuring. The US-based glass, glazing products, and related hardware provider effectively extended its maturities to 2031 as part of a broader liability management exercise. The short-lived co-op had been in place since July.

Active European co-ops

No new European co-ops were reported during the period. The agreement amongst creditors to Swiss specialty chemicals firm Arxada was removed from the tracker after the company’s scheme of arrangement was sanctioned by the English High Court.

At the end of September, Gibson Dunn advised on 24 active co-ops monitored by Debtwire. Milbank and Paul Weiss each advised on six co-ops. Among financial advisers, Houlihan Lokey advised on ten active co-ops, ahead of Evercore on four.

[1] Debtwire monitors active cooperation agreements (“co-ops”) across Europe, North America and Latin America and highlights recently signed co-ops in each region, as well as the advisors most frequently involved in active co-ops.