Paranapanema Restructures Its Debt for $479 Million

Brazilian copper producer Paranapanema has reached an agreement with its main creditors to restructure $479 million worth of its debt.

This marked the fourth modification of Paranapanema’s $616 million debt restructuring agreement in 2017 and more than 18 months of negotiations with 21 lenders. The agreement was aimed at strengthening and balancing the firm’s capital structure, liquidity and debt profile in order to preserve its financial and operational capacity.

This fourth amendment to the restructuring agreement included the division of the company’s debts into three separate tranches and the inclusion of distributions to shareholders, sale of assets and cash sweep mechanisms.

Santos Neto Advogados advised BNP Paribas, a creditor of Paranapanema, on the agreement. The Santos Neto team comprised partners Domicio dos Santos Neto and Fernando Bilotti Ferreira in addition to associates Gabriela Ticianelli and Leticia Ramos Bedim.

Other creditors involved in the agreement included Banco do Brasil and Cargill Inc, who were advised by Arnold & Porter and Dias Carneiro Advogados respectively.

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