Imcopa Announces Successful Completion Of Noteholder Consent Solicitation 1

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3rd June 2010, 06:41am - Views: 835






Business Company Imcopa International Cayman Ltd. 2 image










MEDIA RELEASE PR39824


Imcopa Announces Successful Completion of Noteholder Consent Solicitation


ARAUCARIA, Brazil, June 3 /PRNewswire-AsiaNet/ --


    Imcopa International Cayman Ltd. (the "Issuer") and Imcopa Importacao,

Exportacao Industria e Oleos S.A. (the "Guarantor" or "Imcopa") announced

today that they have successfully concluded their consent solicitation (the

"Consent Solicitation") in connection with the Issuer's U.S.$100,000,000

10.375% Notes due 2009 (ISIN: XS0275709094) (the "Notes").


    The Issuer and Guarantor launched the Consent Solicitation on 10 May 2010

to seek the consent of the holders of the Notes (the "Noteholders") to amend

the terms and conditions of the Notes ("Conditions") with respect to the

timing and amounts of the payment of principal and interest, the Issuer's

ability to prepay its Notes in whole or in part in certain circumstances and

to waive existing defaults under the Notes as well as amending the trust deed

dated 27 November 2006, among the Issuer, the Guarantor and The Bank of New

York Mellon, as Trustee (the "Trustee") entered into in connection with the

issuance of the Notes (as supplemented by supplemental trust deeds dated 28

December 2007, 2 June 2008 and 10 November 2009, respectively, the "Trust

Deed") and the Conditions to conform to the agreement Imcopa expects to reach

with its major bank creditors (the "Bank Creditors") under its credit

facilities ("Credit Facilities"), which agreement is expected to form the

basis of the extrajudicial reorganisation plan that the Guarantor plans to

propose under Brazilian law (the "Restructuring Plan") (collectively, the

"Proposal").


    The Proposal was the subject of a Consent Solicitation Statement dated 10

May 2010, as supplemented by the Supplement to the Consent Solicitation

Statement dated 17 May 2010. The final voting deadline for submission of

electronic voting instructions was 3:00 p.m. (London time) on 27 May 2010.


    At a duly convened and quorate meeting held yesterday pursuant to the

Consent Solicitation Statement and the related Notice of Meeting, Noteholders

representing approximately 94.14% of the Notes outstanding for voting

purposes (and approximately 99.68% of the votes cast) voted in favour of an

extraordinary resolution to adopt the Proposal.


    As a result of the passing of the extraordinary resolution, the Issuer

will make a consent payment to those Noteholders that validly voted in favour

of the Proposal no later than 8 June 2010, which payment will be U.S.$25.94

per U.S.$1,000 principal amount of Notes voted in favour by such Noteholders.


    The effectiveness of the Proposal is subject to certain conditions

subsequent, including that (i) Imcopa enters into a definitive agreement (the

"Definitive Agreement") with the Bank Creditors on terms which substantially

reflect the Proposal, (ii) the Definitive Agreement does not contain any

terms or conditions that are materially different than the Proposal and (iii)

the Issuer and the Trustee enter into a fourth supplemental trust deed to

reflect certain changes to the terms of the Notes reflecting the

implementation of the Proposal. Upon the satisfaction of all of the

conditions subsequent, the Issuer will pay an additional cash amount of

U.S.$25.94 per U.S.$1,000 principal amount of Notes voted in favour by such

Noteholders.


    Negotiations with the Bank Creditors have been progressing since the

Issuer and the Guarantor launched the Consent Solicitation on 10 May 2010,

and Imcopa is hopeful that it will be able to conclude the Definitive

Agreement by 30 June 2010.


    The Consent Solicitation is part of a broader restructuring plan being

developed by Imcopa to formulate a broad restructuring plan aimed at

obtaining sufficient resources to enable it to service all of its debt

obligations and to facilitate the continued growth and development of its

business. Following entry into the Definitive Agreement with the minimum

number of financial creditors required under Brazilian law, Imcopa plans to

file a petition with the Brazilian court to confirm (homologacao) the

Restructuring Plan as an extrajudicial recovery plan (plano de recuperacao

extrajudicial), pursuant to which the terms of the Definitive Agreement will

become, as a matter of Brazilian law, binding on all secured and unsecured

financial creditors of the Guarantor, including the Noteholders.


    Under Brazilian law, in order to obtain the judicial confirmation

(homologacao), the Restructuring Plan must be approved by Imcopa's creditors

holding three-fifths of each affected class. If and when the relevant Bank

Creditors enter into the Definitive Agreement, Imcopa expects to have enough

support for the Restructuring Plan from its secured financial creditors.

Because the Noteholders approved the Proposal, upon the satisfaction of the

conditions subsequent, the Guarantor expects to have, when taken together

with those of its other unsecured creditors who also approve the

Restructuring Plan, the necessary three-fifths approval from unsecured

financial creditors in order to file the petition with the Brazilian court to

confirm the Restructuring Plan.


    "Imcopa is encouraged by the continued support of its Noteholders and

other creditors during this challenging period," said Imcopa Chief Executive

Officer Frederico Jose Busato Jr. "We believe that we are close to concluding

this restructuring process and are eager to implement a Restructuring Plan

that is fair to all parties, including the Noteholders, which will allow us

to put our recent difficulties behind us and refocus our efforts on

continuing to build on our position as a premier global soybean processor."


    HSBC Securities (USA) Inc. acted as sole Solicitation Agent and Lucid

Issuer Services Limited acted as Information and Tabulation Agent in

connection with the Consent Solicitation.


    Imcopa is the largest Brazilian-owned soybean processor in terms of

volume of soybeans processed and the fifth largest soybean processor in

Brazil in terms of annual processing capacity, according to ABIOVE. Imcopa

focuses on the production and development of value-added products for the

international market. Specifically, Imcopa pioneered processing genetically

modified organism ("GMO") free soybeans and has become one of the global

leaders in the production of certified GMO-free soybean products, which

include soybean protein concentrate (which has a 60.0% protein content), soy

meal, soy oil and lecithin. Imcopa targets its products to certain market

niches, including the market for GMO-free soybean products and the

high-protein soy meal market for aquaculture feed, where Imcopa believes it

maintains a leadership position in the European market.


    Investor Contact Information:

    Andre Tomazi, +55 41 2141 9667

    ri@imcopa.com.br


SOURCE: Imcopa International Cayman Ltd.


    CONTACT: Investors,

            

Andre Tomazi, 

             Imcopa, 

             +55-41-2141-9667,

Business Company Imcopa International Cayman Ltd. 3 image

             ri@imcopa.com.br








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