IMPSA in $412 Million Debt Restructuring

August 9, 2018

Cleary Gottlieb assisted Industrias Metalúrgicas Pescarmona S.A. (IMPSA S.A.) in connection with the implementation of the restructuring of approximately $412 million of U.S. dollar-denominated bonds issued by IMPSA and its affiliate WPE International Coöperatief U.A. (the old bonds).

The settlement closed on August 9, 2018, with an acceptance level of holders of over 95 percent of the outstanding principal amount of the old bonds.

The restructuring was effected in furtherance of the Argentine out-of-court reorganization agreements (acuerdos preventivos extrajudiciales) of IMPSA and its affiliate, Venti S.A., which were confirmed by Argentine courts on October 2-3, 2017.

The restructuring was among the most challenging Argentine debt restructurings in recent years and involved an aggregate amount of liabilities of approximately $1.25 billion, with a variety of different secured and unsecured creditor constituencies and complex financial issues.

The restructuring was implemented with respect to the old bonds through the delivery of new bonds issued by IMPSA (or the cash equivalent) under a process designed to permit compliance with securities regulations and mitigate the risk of ongoing litigation.