General de Alquiler restructuring brought to court; no noteholder OK

By Caroline Salls

Pittsburgh, May 5 – General de Alquiler de Maquinaria, SA filed a petition for court approval of its restructuring after none of the holders of its senior unsecured convertible notes due 2017 consented to the terms of the restructuring, according to a news release.

The deadline for noteholders to accept the restructuring terms was April 17. The court petition was filed on April 28.

The company said its annual shareholders’ meeting has been called to submit the agreements for the capitalization of General de Alquiler’s financial debt to the shareholders for approval.

The meeting will be held on May 28 or on May 29 if there is no quorum at the first meeting.

As previously reported, the terms of the proposed restructuring include the following:

• The reduction of financial debt and the strengthening of the company’s equity structure through the capitalization of €95 million of debt. As a result of the capitalization, the financial entities will acquire 73% to 75% of the company’s share capital;

• The conversion of €60 million into subordinated debt, most of which will be converted into a convertible profit participating loan;

• The granting of €4.5 million as new money for future investments;

• The permanence of the current management team for the purposes of developing the business plan for the growth of the group;

• Amounts due to noteholders will be reduced to 24.28%, with a corresponding reduction in accreted principal amount. The remaining 75.72% of the debt will be capitalized, unless noteholders chose to accept a write-off of the amounts due to them for an amount equal to the euro amount of share capital they would be entitled to receive upon capitalization;

• The final maturity date of the notes will be March 30, 2021; and

• Conversion conditions and rights of the noteholders will remain otherwise unaltered.

According to the release, noteholders who have chosen to convert their notes into ordinary shares are entitled to the economic rights of a shareholder for the purposes of dividend entitlement.

However, the company said noteholders are not able to transfer newly issued or Treasury ordinary shares until a specified registry date.

General de Alquiler is an equipment rental company in Spain and Portugal and is based in Oviedo, Spain.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.