Posadas in $392.6 Million Notes Restructuring

Cleary Gottlieb is representing Grupo Posadas S.A.B. de C.V. (Posadas) and its affiliate Operadora del Golfo de Mexico S.A. de C.V., the largest hotel operator in Mexico, in the successful restructuring of $392.6 million of Posadas’ 7.875% senior notes due June 2022.

Posadas’ pre-packaged plan of reorganization was approved by U.S. Bankruptcy Court judge Sean H. Lane on December 8, 2021, and the plan becomes effective on December 15, 2021. 

Following extensive negotiations with the ad hoc group of noteholders, Posadas signed a restructuring support agreement on August 17, 2021. In addition, Posadas signed a restructuring letter agreement with an additional group noteholders on August 17, 2021. On October 26, 2021, Posadas filed its pre-packed plan of reorganization pursuant to Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Pursuant to the agreed plan, all classes of creditors will remain unimpaired and will be paid in full in the ordinary course, except for holders of the existing notes, which will receive new senior secured notes in exchange for their existing notes claims. The new notes have an extended maturity date of 2027 and will be guaranteed by Posadas’ subsidiaries.