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Clifford Chance advises on complex Paranapanema restructuring in Brazil

10 October 2017

Clifford Chance advises on complex Paranapanema restructuring in Brazil

Clifford Chance acted as international counsel for a group of lenders in connection with the US$600 million restructuring of Paranapanema S.A. ("PMA") – the largest independent producer of primary copper in Brazil.

The total restructuring comprised 84 percent of PMA's prior outstanding debt across a group of 11 lenders, including Cargill, SMBC, ING, Scotiabank, Bradesco and Banco do Brasil.

In addition to requiring the drafting of more than 20 new loan agreements and amendments under New York law, approximately 28 percent of the outstanding debt was simultaneously converted into debentures as part of a debt-for-equity swap.

The Firm's team, led in New York by Banking & Finance partner Chris Willott, included associate Richard Mailey and trainees Kishan Parshotam and Deborah Marmot, all from Clifford Chance's São Paulo office.

Clifford Chance has extensive experience working on Brazilian restructurings, including the recent successful restructurings of Granol, Santa Terezinha, Borrachas Vipal and Unigel.

Clifford Chance was the first international law firm to open an office in São Paulo, and has been recognized for decades as a preeminent law firm across the Latin America region. The Firm has led the way in developing successful, novel financing structures for a diverse client base, and is constantly innovating its service offering. In the areas of restructuring and liability management, the Firm's multidisciplinary, business-minded approach leverages cross-border expertise in finance, commercial transactions and litigation.