Cleary Gottlieb represented an Adhoc Committee of Bondholders of Cydsa in its restructuring of $159 million of its 9.375% notes due 2009, marking the first time international bondholders received a majority of a listed Mexican company’s equity in a debt restructuring. In exchange for the notes, Fintech and other bondholders received Series A common shares representing 10% of Cydsa’s share capital, Series C non-voting shares representing 50% of Cydsa’s share capital and $25.5 million of new debentures convertible into an additional 20% of Cydsa’s share capital. The Series C shares will convert into Series A common shares on May 1, 2008 or upon acceleration of the debentures.
Cydsa is a leading Mexican industrial manufacturer of chemicals, plastics, synthetic fibers, yarns, and flexible packaging. The debt restructuring consummated a comprehensive operational and financial restructuring of the company, including disposing of unprofitable businesses, eliminating corporate overhead, appointing independent directors and concurrently restructuring an additional $192 million in bank debt.