Guerrero Olivos assists La Araucana with bond exchange

Guerrero Olivos has assisted Caja de Compensación de Asignación Familiar La Araucana on two bond exchanges

Juan Enrique AllardLa Araucana is Chile’s second-largest non-profit financial assistance institution, with a more than 25-per cent market share, and which provides financial assistance to its affiliates to improve their standard of living.

The registration and exchange of two series of bonds totalled $442 million and was carried out in the context of the reorganisation and restructuring agreement executed by La Araucana and its creditors.

Creditors representing 80 per cent of the total concurred with the bond exchange process and Banco de Crédito de Inversiones acted on behalf of the bondholders of other bond series.

The law firm also represented La Araucana during its restructuring and insolvency procedure, amounting to $1.7 billion, and which is seen as one of the largest restructurings in Chile.

“The transaction was high-profile, and the Guerrero Olivos’ corporate, insolvency and capital markets teams were praised for creating innovative regulatory structures that allowed all parties to achieve good results in a long and intricate process before the regulatory authorities,” the law firm said.

Guerrero Olivos’ team was led by partners Juan Enrique Allard (pictured) and Miguel Coddou, with associates César Gálvez and Josefina Sánchez. 

Law firm Garrigues acted as counsel to the creditors.