PPU, Cuatrecasas, and multiple firms act on Procaps Group’s multijurisdictional debt restructuring

Representatives from Philippi Prietocarrizosa Ferrero DU & Uría (PPU) in Colombia and Peru have advised Procaps Group entities in respect of a debt restructuring of US$209 million existing debt that will help the group to focus on its plans to restore profitability by cutting costs and concentrating on its most profitable areas, particularly prescription drugs and contract development and manufacturing (CDMO) services.

Meanwhile, Cuatrecasas counseled  Banco BTG Pactual Colombia, Banco BTG Pactual (Cayman Branch), Bancolombia, and Banco Davivienda on the restructuring of three credit facilities governed by Colombian law, granted to Procaps and its Luxembourg-based parent company, Procaps Group—marking an important path for the Latin American pharmaceutical company.

The debt restructuring involved extending maturity dates and modifying payment terms, as part of a broader strategy that reorganized the group’s regional operations and refinanced approximately $209 million in debt.

The transaction also entailed the structuring and formalization of a guarantee package for all creditors in the same category, involving collateral under the laws of Colombia, Peru, and Spain. The cross-border nature of the deal required coordination across multiple jurisdictions, including Brazil, Colombia, El Salvador, Luxembourg, New York, and Spain.

For the lenders, the transaction offered a critical opportunity to optimize credit recovery during a pivotal moment for the company, which simultaneously completed a $130 million capital injection, comprising a $90 million private equity investment and a $40 million convertible bond issuance.

From PPU, partners Juan Fernando Gaviria (Colombia) (pictured center) and Rafael Puiggros (Peru) (pictured right) led the transaction along with associates Juliana Pérez, Daniela Mateus, Juan Martín Dussan, and Andrés Mólina (PPU Colombia); Sergio Rodriguez and Daniella Ginocchio (PPU Peru)

Based in Bogotá, Cuatrecasas’ partner Juan Carlos Puentes (pictured left) was the head of the advisory team with the support of Natalia Villamizar, Verónica Hernández, Juanita Calderón, Lorenzo Lizarralde, Luisa Múnera, and Luisa Penagos.

Spanish and Peruvian law advice was led by Carlos Lasarte de Launet and Kiomi Osorio, respectively, with contributions from Guillermo Castellanos, Miguel Ángel Gonzalo, Luis Olazábal, and Alejandro Zorrilla.

• GT Law as US counsel to Procaps Group
• Cuatrecasas as Colombian counsel to the Lenders 
• Baker McKenzie Colombia as Colombian counsel to the noteholders 
• Baker McKenzie US as US counsel to the noteholders 
• Arendt & Medernach as Luxembourg counsel to the Parent Guarantor
• Demarest Advogados as Brazilian counsel to the Obligor organized in Brazil
• Arias & Muñoz as El Salvador counsel to the Obligors organized in El Salvador 
• Osterling Abogados as Peruvian counsel to the Obligor organized in Peru
• Camilleri Preziosi Advocates as Maltese counsel to the Obligor organized in Malta 
• Gómez-Acebo & Pombo Abogados as Spanish counsel to the Obligors organized in Spain