Argentine Industrias Metalurgicas Pescarmona SA (Impsa) has obtained preliminary consent from a group of creditors for a debt restructuring including the transfer of 40% of its share capital to a trust for the benefit of the creditors.
The parties have agreed on guidelines to replace existing with new bonds and use dividends to repay the debt. Impsa, which manufactures and builds hydropower plants, wind farms and industrial equipment, will seek the support of additional creditors to advance the negotiations toward a definitive agreement. The restructuring is to provide the company with flexibility, reducing its financial obligations and postponing debt maturity, according to a filing on Thursday.
The proposal includes up to USD 146 million (EUR 136.1m) maturing between 2026 and 2031 with an annual interest rate of 1% or Badlar plus 1%; up to USD 322 million in discount bonds due 2020 to 2025, with 7.5% until December 2019, 8.5% until December 2022 and 9.5% until maturity, or Badlar plus 3.5% throughout the period for peso-denominated debt; another USD 4 million will be canceled in two equal portions at the end of 2017 and 2018 at a Libor rate plus 3%. The instruments may be cancelled in advance, depending on profits from the company's operations.
Regarding its business in Brazil, Impsa said that a proposal in the insolvency process of Wind Power Energia SA (WPE) may be approved by creditors in the next 30 days.
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