T&C advises BNY on the OEC Group’s judicial reorganization plan
Tauil & Chequer Advogados in association with Mayer Brown advised The Bank of the New York Mellon (BNY), as Trustee for the bondholders, at the general meeting that approved the judicial reorganization plan for the OEC Group, Novonor’s (formerly Odebrecht) construction and engineering company.
After extensive negotiations, in a meeting that lasted around 9 hours, more than 90% of the creditors approved the plan, which involves restructuring liabilities of approximately US$ 5 billion.
The OEC Group’s indebtedness is mostly made up of debt securities issued abroad (bonds), and the bondholders were essential to the approval of the company’s restructuring proposal.
The advisory service was led by partner Liv Machado (pictured), from the Restructuring and Bankruptcy practice, and included the work of associates Aline Sanches and Sofia Nielsen. BNY represented a significant and crucial credit in the negotiations, amounting to approximately US$ 4 billion.
The judicial reorganization plan has yet to be approved by the 2nd Bankruptcy and Judicial Reorganization Court of the São Paulo/SP Central Court. Subsequently, proceedings are expected to be initiated in the United States to validate the effects of the restructuring abroad (Chapter 15).
