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Unigel gathers creditor support needed to approve restructuring plans

Unigel has gathered the support of creditors holding 50% plus one of the credits to be restructured needed to approve its extrajudicial restructuring plans, according to a source close to and a source familiar with the matter.

The Brazilian chemical producer plans to submit new versions of the two debt restructuring plans by 21 May, according to a second and a third source close to the matter.

A spokesperson at Unigel declined to comment on the matter.

The company filed for an extrajudicial debt restructuring on 20 February, saying it had the support of an ad hoc group of international bondholders holding 35.2%, or BRL 1.361bn (USD 265m), of the credits to be restructured.

There have been no major changes to the terms of the plans Unigel previously submitted when it filed for the extrajudicial debt restructuring, according to the second source close to the matter.

The chemical producer is offering two options involving new bonds to repay creditors, with a smaller haircut for those who contribute new money. The restructuring plan provides for a USD 100m capital increase, and creditors will receive a 50% equity stake in exchange for the new money.

Nevertheless, certain holders of the USD 530m 8.75% 2026 bonds have been demanding a higher equity stake for the same size capital contribution, the third source and a fourth source close said.

“The new plans continue to provide for an immediate 50% dilution,” the first source said.

The filing of the new versions of Unigel’s restructuring plans is a necessary step to enable the sale of Plastiglas in Mexico, the second source said. The sale of Plastiglas could occur one week after the presentation of the plans, the same source added.

The Brazilian chemical company reached an agreement to sell Plastiglas to Mexico’s Verzatec in December 2023, but the closing has been pending a waiver from one creditor, as reported.

Unigel had expected to conclude the sale of Plastiglas in Mexico before the end of April. Plastiglas is part of the extrajudicial debt restructuring proceeding filed by Unigel and, if sold, it would be removed from the “perimeter” of the plans, according to a blowout material.


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