Lupatech foreign plan effective; court asked to close Chapter 15 case

By Caroline Salls

Pittsburgh, Oct. 10 – Lupatech SA’s foreign pre-packaged reorganization plan took effect on Oct. 8, and the company’s foreign representative asked the U.S. Bankruptcy Court for the Southern District of New York to close its Chapter 15 case, according to Friday court filings.

The plan was recognized and the approval order enforced by the bankruptcy court on July 14. The extrajudicial reorganization plan was approved June 4 by the 2nd Court of Law of the Nova Odessa Judicial District.

Under the plan, Lupatech said outstanding 9 7/8% guaranteed perpetual bonds were exchanged for new notes in a principal amount equal to 15% of the total outstanding principal and unpaid interest on the bonds, as well as new shares in the company’s capital stock or American Depositary Shares representing shares.

The new shares were issued at a price representing the remaining 85% of the outstanding principal and interest on the unsecured bonds.

Foreign representative Ricardo Doebeli said in the case closure motion that “there is no longer a foreseeable reason for these cases to remain open.”

“Any remaining matters to be resolved in the foreign proceeding should not require the assistance of courts in the United States,” Doebeli said in the motion.

Lupatech manufactures industrial materials and is based in Caxias do Sul, Brazil. The company filed for bankruptcy on May 23 under Chapter 15 case number 14-11559.

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