Grupo Posadas gets OK to assume restructuring support agreement

By Sarah Lizee

Olympia, Wash., Nov. 18 – Grupo Posadas SAB de CV received court approval to assume the restructuring support agreement with holders of its 7 7/8% senior notes due 2022, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the company said the consensual financial solution will reduce its debt service obligations and extend the schedule on which its debt matures by five and a half years to Dec. 30, 2027, allowing Grupo Posadas to prioritize the use of cash for operating activities to preserve jobs and help maintain its hotels.

A combined hearing on the company’s pre-packaged Chapter 11 plan and related disclosure statement is scheduled for Dec. 8.

Subject to court approval, the plan provides for the exchange of the existing notes for new senior notes secured by liens on real estate and certain accounts receivable of the company.

All other undisputed claims, including those of suppliers for goods and services provided before as well as during the Chapter 11 process, are unimpaired and will be paid in full in the ordinary course or otherwise satisfied.

Specifically, holders of administrative claims will be paid in full in cash, according to the disclosure statement.

Holders of priority tax claims and other priority claims will be paid in full.

Holders of secured claims will receive payment in full in cash, reinstatement of the claims, or the collateral securing their claims.

Existing notes claimholders will receive, for each $1,000 principal amount and the discharge in full of all accrued interest prior to the petition date in respect of their existing notes claims, new notes in a total amount equal to $1,000 plus an amount equal to the sum of (a) 4% of a $1,000 principal amount, multiplied by (b) a fraction equal to the number of days that have elapsed from Aug. 1 through the plan effective date, divided by 360 days. If the plan effective date occurs on or after Jan. 1, then the amount calculated above for the period from Aug. 1 through Dec. 31 will be paid in the form of additional initial principal amount and the amount calculated for the period from Jan. 1 through the plan effective date will be paid in cash.

Holders of general unsecured claims will receive payment in full in cash or reinstatement.

Intercompany claims and interests will be reinstated.

The Mexico City-based hotel company filed Chapter 11 bankruptcy on Oct. 26 under case number 21-11831.

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