B&E advises Kaufmann on Santiago public transport bus Project
Barros & Errázuriz has advised Grupo Kaufmann in the project developed by Suministradora de Buses K Uno (K1), a company of Grupo Kaufmann, incorporated for the supply of 82 diesel buses (the Bus Fleet) to the Santiago Public Transport System (Sistema de Transporte Público de Santiago).
The transaction was completed on 3 May under supply contracts entered into with the Ministry of Transport and Telecommunications (MTT), dated 20 July 2021, for 522,000 UF (USD $23,156,000).
The consultancy involved the review of the bidding conditions, the preparation of the bids, the awarding of the bid, the conclusion of the corresponding contracts with the MTT and the bus operators, the preparation and negotiation of the Project Contracts with the different suppliers and service providers. It also covered tax, corporate and governance issues, as well as contract administration matters, and included agreements for the development and financing of the project with CAIO Industrial of Brazil, the company that supplies the bodywork for the buses and also financed their procurement.
In the same project, another B&E team advised Banco Security in the opening of a non-revolving credit line for UF 522,000 (USD 23,000,000 approx.) to the company K1. This advice involved the structuring and negotiation of a credit line agreement, the amount of which will be used for the acquisition of a fleet of 82 buses that will be part of the Metropolitan Public Transport System of Santiago de Chile and the usual guarantees for this type of operations. In addition, B&E played a key role in the negotiation and preparation of the guarantees granted by the Debtor and its shareholders to guarantee compliance with its obligations under the aforementioned credit facility.
Chriwing Abogados acted as legal counsel to CAIO Industrial de Brasil.
B&E’s team was led by partners Francisco de la Barra Gili (pictured left) and Enrique Barros Vial (pictured right), assisted by counsel Daniela Peña Fergadiott, senior associate Valentina Villalobos Valenzuela and associates María José Bordalí Velasco, Patricia Rivas Correa, Pablo Ulloa Sámuel and Camila Rubio Chaparro.
