Shearman And Sterling

News October 16, 2014

Shearman & Sterling Advises Lupatech S.A. in Securities Exchange and Chapter 15 Bankruptcy Proceedings

Shearman & Sterling is counsel to Lupatech S.A. and certain of its affiliates (collectively, the “Lupatech Group”) and to their Foreign Representative in proceedings commenced pursuant to Chapter 15 of the United States Bankruptcy Code. The Lupatech Group manufactures highly technical components and delivers specialized services principally within the oil, gas, and foundry industries in Latin America and, increasingly, throughout the world.

As a result of financial distress occasioned, in large part, by the 2008 global financial crisis, Lupatech engaged Shearman & Sterling to assist it in an effort to rationalize its capital structure through a Brazilian prepackaged plan of reorganization (the “Plan”), which was approved in an insolvency proceeding known as a recuperação extrajudicial and recognized by the United States Bankruptcy Court for the Southern District of New York.

Pursuant to the terms of the Plan, holders of The Lupatech Group’s prepetition 9.875% Guaranteed Perpetual Bonds, in an outstanding principal amount of approximately $302.5 million, received new notes in a principal amount equal to 15% of the aggregate outstanding principal and accrued and unpaid interest under the prepetition bonds, and new equity interests in Lupatech S.A. representing up to the remaining 85% of the outstanding principal and accrued and unpaid interest on the Guaranteed Perpetual Bonds. The exchange of securities was completed on October 8, 2014.