Shearman & Sterling’s Financial Restructuring & Insolvency Group advised an ad hoc group of holders (the Ad Hoc Group) of 8.875% senior secured notes due April 11, 2022 (the Existing Notes) in entering into a transaction support agreement (the Agreement) to complete an exchange offer (the Exchange Offer) through which eligible holders of Existing Notes will be invited to exchange their Existing Notes for up to US$118 million of new senior secured notes (the New Notes) to be issued by Grupo Kaltex, S.A. de C.V. (the Company).

As part of the transaction, the Company will honor and repay in full all Existing Notes that are not exchanged for New Notes (which the Company will repay concurrently with closing of the Exchange Offer), including the payment of all accrued and unpaid interest on the Existing Notes.

The New Notes will be secured by land, buildings, and machinery that comprise substantially all of the assets of the Company’s textile business.

The Company and the Ad Hoc Group have, pursuant to the terms of the Agreement, committed to complete the Exchange Offer subject to the satisfaction of certain conditions precedent specified in the Agreement. The Company expects to launch the Exchange Offer in the upcoming days and expects to close the Exchange Offer approximately one month thereafter.

The Team