Francisco (Paco) L. Cestero’s widely lauded practice focuses on multijurisdictional restructurings and financings, mergers and acquisitions, and crisis management.
Paco’s interdisciplinary practice and experience with complex, cross-border transactions and proceedings in Brazil and the rest of Latin America allow him to create novel and holistic solutions for clients, effectively guiding them through the multifaceted issues that arise in emerging market transactions and proceedings. In recent years, he has tackled many of the business cycle, administrative, corruption, capital, and legal issues impacting transactions and proceedings in Brazil, both in and outside court reorganization processes.
Paco joined the firm in 1995 and became a partner in 2004. He joined the São Paulo office in August 2011. From 1998 to 2002 and from 2008 to 2011, he was resident in the firm’s Rome office. Before attending law school, Paco worked at the Government Development Bank for Puerto Rico, where he participated in several privatizations.
Restructuring and Finance
Ad hoc creditors’ committees of bondholders in connection with the nearly $20 billion restructuring of Oi, the largest corporate restructuring in the history of Latin America.
Ad hoc creditors’ committees of bondholders in connection with the nearly $5 billion restructuring of Odebrecht Oil and Gas, the largest-ever Brazilian extrajudicial restructuring.
Ad hoc group of bondholders and DIP lenders in connection with the restructuring and financing of OGX, the largest private Brazilian reorganization in history, including the ad hoc group of OGX bondholders in connection with the restructuring of OSX-3, involving the re-negotiation of the vessel charter amendments between OSX-3 and OGX.
Ad hoc group of a majority of unsecured and secured bondholders and certain lenders of Tonon Bioenergia S.A. in its restructuring pursuant to Brazilian judicial reorganization proceeding.
Ad hoc group of secured project finance lenders in connection with the proposed restructuring of more than $1.67 billion in total indebtedness of Constellation Oil Services Holding S.A. and its subsidiaries.
A group of bondholders in connection with the potential restructuring of GVO.
Mergers and Acquisitions
Enel on strategic and U.S. issues in connection with its 5.5 billion reais ($1.5 billion) acquisition of 73% of the shares of Eletropaulo.
América Móvil (the largest wireless operator in Latin America) in over 10 international restructurings, acquisitions, and joint ventures throughout Brazil and the rest of the Americas, as well as in various capital market and bank financings.
TPG and Gávea Investimentos in their acquisition of a 25% equity interest for approximately US$230 million in Rumo Logística.
TIVIT (Brazil) in its acquisition of Synapsis.
BHP Billiton in connection with the carve-out of its Brazilian assets as part of the demerger of South32.
Baidu, a leading Chinese language internet search provider, in its acquisition of the Brazilian operating subsidiaries of Peixe Urbano.
Doral Financial, a bank based in Puerto Rico, in a recapitalization transaction that entailed an equity investment of $610 million in Doral by a newly formed bank holding company in which a number of private equity and asset managers invested, as well as on various enforcement and reporting matters.
An alternative asset manager in connection with its proposed DIP loan to OAS and possible acquisition of Invepar.
A group seeking to acquire Rede Energia, a distressed Brazilian utility.
Crisis Management and Investigations
BHP Billiton, Vale, and Samarco to conduct the external investigation into the cause of the breach of the Fundão tailings dam.
A large multinational home appliance corporation in an internal inquiry regarding a Brazilian tax matter.
A major financial institution in ongoing investigations concerning FX markets in Mexico, Brazil, and Argentina.
A media company in an internal investigation concerning alleged data manipulation at its Brazilian operations.
- “LATAM Market Development: Covid-19 and Its Implications on Private Sector Credits,” (co-author with Richard Cooper and Adam Brenneman) Cleary Gottlieb Alert Memorandum, (March 2020)
- “Odebrecht Oil & Gas and the Use of Brazilian Extrajudicial Reorganization in Cross-Border Restructurings,” (co-author with Richard Cooper and Jonathan Mendes de Oliveira ), Pratt’s Journal of Bankruptcy Law (October 2018)
- “Oi S.A.: The Saga of Latin America’s Largest Private Sector In-Court Restructuring,” (co-author with Richard Cooper and Jesse Mosier), Pratt’s Journal of Bankruptcy Law(July 2018)
- “Insolvency Reform In Brazil: An Opportunity Too Important To Squander,” (co-author with Richard Cooper and Dan Soltman), Pratt’s Journal of Bankruptcy Law (January 2018)
- “The Brazilian Insolvency Regime: Some Modest Suggestions – Part 2,” (co-author with Richard Cooper, Jesse Mosier, and Dan Soltman), Pratt’s Journal of Bankruptcy Law (April/May 2016)
- “The Brazilian Insolvency Regime: Some Modest Suggestions – Part 1,” (co-author with Richard Cooper, Jesse Mosier, and Dan Soltman), Pratt’s Journal of Bankruptcy Law (February/March 2016)
- “The Fight for Bondholder Suffrage in Brazilian Restructurings,” (co-author with Dan Soltman), Pratt’s Journal of Bankruptcy Law (January 2016)
June 26, 2019
September 12, 2017
July 10, 2017
October 29, 2015
May 07, 2014
December 03, 2013
May 08, 2013
March 19, 2013