Creditors in Landmark Restructuring of Aracruz

May 13, 2009

Cleary Gottlieb is advising the ad hoc creditors committee of Aracruz Celulose S.A. in connection with its restructuring of more than $3 billion of derivative and bilateral bank debt—the largest restructuring of derivative obligations in Latin America since the onset of the financial crisis. The creditors represent the first of the largest Latin American companies’ creditor groups to reach an agreement to restructure losses experienced as a result of the financial crisis. The agreement was signed on May 13.

Based in Brazil and one of the world’s largest pulp and paper companies, Aracruz is among the many corporations in Latin America that experienced significant losses as a result of the sharp devaluation of the local currency against the U.S. dollar in the wake of the global financial crisis.

Cleary Gottlieb is advising on many other significant restructurings in Latin America, including, among others, the creditors of CEMEX, GRUMA, Comercial Mexicana (Comerci), Metrofinanciera and Vitro in Mexico, the creditors of Intelig and Independencia in Brazil, and the creditors of Transportadora de Gas del Norte in Argentina. The firm has been counsel in the restructuring of over $35 billion of private sector debt in on-going or recently closed matters.