Cuatrecasas assists CAP in inter-company debt restructuring with CSH

Cuatrecasas Chile has counselled CAP on the restructuring of inter-company debt contracted with its subsidiary Compañía Siderúrgica Huachipato

 Cuatrecasas, through its team in Santiago de Chile, has assisted CAP in the restructuring of the intercompany debt owed to it by its subsidiary Compañía Siderúrgica Huachipato (CSH), which amounted to 290 million dollars. This process includes the capitalisation of a large part of the debt contracted with CAP, as well as the transformation of part of the remaining debt into a long-term credit, thus reducing CSH’s short-term financial burden.

The transaction was carried out in line with the procedure for the approval of related party transactions established in Law 18.046 on Corporations, thus ensuring that minority shareholders were able to participate throughout the process.

Formerly Compañía de Acero del Pacífico, CAP, founded in 1946, is one of the largest steel mining groups in Chile. Its iron production is mainly exported to countries such as China, Japan and Bahrain.

Siderúrgica Huachipato is an industrial plant located in the Talcahuano district, in the city of Gran Concepción, dedicated to the production of steel.

Cuatrecasas’ team consisted of partners Roberto Guerrero (pictured left), Tomás Kubick (pictured centre) and Macarena Ravinet (pictured right), together with associates Franco Dalmazzo, Pilar Illanes, Ronny Vaismann and Isidora Opazo.