PPU counsels JP Morgan Chase and Goldman Sachs on Avianca financing
PPU has advised on the $1.5 billion financing that reaches several jurisdictions
Philippi Prietocarrizosa Ferrero DU & Uría assisted as Colombian, Chilean and Peruvian counsel to JP Morgan Chase Bank and Goldman Sachs, as lenders, on the DIP financing of the Panamanian company Avianca Holdings and certain affiliates (including several Colombian companies) for $1.5 billion.
The advisory included the assistance to the client on certain Colombian law matters relevant to the structuring of the transaction, as well as the negotiation of several security agreements governed by the laws of Colombia, Chile and Peru.
This is a path-breaking transaction in Colombia, not only because of the importance of Avianca in the Colombian local market but also due to the complex cross-border security package required to protect the lenders’ interest. As one of the largest DIP financings involving Colombian companies, this transaction will be the reference for future similar transactions in the local market.
The jurisdictions involved in the transaction are Colombia, United States, Chile, Panama, Peru, Bahamas, Bermuda, Ecuador, Guatemala, Costa Rica, Salvador, Canada, Honduras, Mexico, Uruguay and the United Kingdom.
Philippi Prietocarrizosa Ferrero DU & Uría team was led by partner Hernando Padilla (pictured), and involved associates Paula Buriticá, Carlos Padilla, Santiago Cruz, and Pedro Arango.
As New York counsel to the lenders, Simpson Tatcher & Barlett team was led by partner Sandy Qusba, and involved counsel Nicholas Baker, senior associate Cristina Gonzalez, and associates Patrick Wolff and Mari Zaldivar.
As Colombian counsel to the borrower, Gómez Pinzón Abogados team was led by partner Ricardo Fandiño, and involved senior associate Daniel Florez, and associates Ana María Reyes and Silvia Robledo. Also as Colombian counsel to the borrower, Dentons Cardenas & Cardenas team was formed by partner Catalina Pinilla and associate Alejandro Parra. Milbank was the New York counsel to the borrower.
