Last month, creditors of Brazilian retailer Americanas SA approved its debt restructuring plan, which is centered on a capital increase from its main shareholders and also provides for a debt-for-equity option. The court handling the case is expected to decide whether to confirm the creditors’ approval following a year-end pause in court activity.

Mexican non-bank financial institution Unifin presented the final version of its reorganization plan, which was approved by the holders of certain domestic bonds (the UNIFIN 00422 Certificados Bursatiles) – but rejected by others (the holders of UNIFIN 00122 Cebures). The plan proposed by Chile-based salmon farmer Nova Austral was rejected by creditors. A revised version of the repayment proposal will be submitted to a vote on 10 January (see Court Calendar below).

Also in December, Brazilian petrochemical company Unigel obtained a preliminary injunction to suspend all debt enforcements against it. The request was initially denied by a Sao Paulo bankruptcy court — which could have required a hastened full bankruptcy protection request — but the court reconsidered after Unigel appealed. Other news related to recent filings includes Chilean electricity company Inversiones Latin America Power Ltda getting approval for its first-day motions from a US court handling its Chapter 11 cases, including joint administration and permission to maintain its cash management systems.

On the flip side, last month Aralco Group’s judicial recovery was finally closed, after almost 10 years since it commenced in early 2014. Also closed last month was one of the last two Chapter 11 cases of Alpha Latam Management, the US-based company that ultimately owns Mexican non-bank lender AlphaCredit.

The US court handling the Americanas Chapter 15 recognition proceeding rejected the motion filed by bondholder Sablon Partners to request a discovery process aimed at gathering evidence for a potential individual lawsuit to be filed against the retailer and its board of directors. In other Chapter 15 news, Brazilian company GAM Empreendimentos e Participacoes SA commenced an ancillary proceeding with a US Court seeking recognition of its liquidation process in Brazil. Global green coffee supplier Mercon Coffee Corporation, which recently commenced Chapter 11 proceedings for itself and certain foreign affiliates, including Mercon Brasil, was expected to seek recognition of its in-court debt restructuring process with a Brazilian court, but this did not materialize by the end of the month.

In terms of post-petition funding, Brazilian telecom services provider Oi SA reached an agreement with an ad hoc group of bondholders regarding a USD 400m debtor-in-possession (DIP) financing, to be provided by those creditors, instead of a previous DIP proposal offered by Brazilian bank BTG Pactual. The court is expected to rule on the matter within the next few weeks. Brazilian sugar and ethanol producer Grupo Virgolino de Oliveira had also requested court’s authorization for a BRL 30m DIP facility, but the company withdrew from the transaction before the judge decided on the matter.

Other court developments of interest last month involving Latin American distressed companies included (i) Banco Santander obtaining court authorization to move forward with an individual execution lawsuit filed against Brazilian electricity services provider Light SA; (ii) Mexican non-bank lender Credito Real liquidator publishing its ninth partial report; and (iii) Tangelo’s (formerly Mexarrend) conciliator presenting the provisional creditor list to the Mexican court handling its concurso proceeding.

The months ahead