Chile’s Vivo secures loans, exchanges bonds as part of restructuring plan

Chilean insurance company Vivo SpA, formerly known as VivoCorp, has announced a financial restructuring that includes around $30 million in loans and the issuance of bonds.

Posted jeudi, septembre 29 2022
Chile’s Vivo secures loans, exchanges bonds as part of restructuring plan

Vivo secured a subordinated loan agreement for an amount equivalent date to UF 349,000 ($15 million), and a revolving credit facility agreement for an amount equivalent to UF 400,976 ($15 million), to be paid preferentially with respect to all claims of unsecured financial creditors.

The loan agreements were entered into by Vivo and its creditors under the company’s reorganization agreement to secure additional financing to enable Vivo to fulfill its payment obligations to its creditors.

The company also announced a bond exchange as part of its reorganization agreement agreed in late 2021.

Chilean law firm Bofill Mir advised Vivo on the negotiation, drafting and execution of the respective bond issuance agreements, their complementary deeds and amendments, in order to ensure that the bonds existing prior to Vivo’s judicial reorganization proceeding were exchanged for those to be issued for purposes of complying with the terms and conditions of the reorganization plan.

In its role as counsel to the company and its bondholders, Bofill Mir advised Security Compañía de Seguros de Vida, Penta Vida Seguros de Vida, Principal Compañía de Seguros de Vida, Chilena Consolidada Seguros de Vida, Larraín Vial, Credicorp Capital, Falcom Administradora General de Fondos and MBI Administradora General de Fondos, as well  S.A. and then all the other bondholders of series C, D and E bonds issued by VivoCorp (now Vivo SpA).

The firm also advised the representative of the bondholders, Banco de Chile, on all the legal aspects involved in the breach of certain obligations under the bonds issued by the company, as well as on the company’s reorganization proceedings initiated in October 2021.

Bofill Mir advised the bondholders, as creditors of Vivo, in the process of verification of their claims, and in the negotiation and subsequent approval of the in-court reorganization plan filed by Vivo, which aims to ensure the payment to its creditors upon the terms and conditions indicated in the reorganization plan.

The firm also advised the bondholders in the negotiation, drafting and implementation of the corporate acts and relevant agreements required for the proper execution and implementation of the reorganization agreement, which includes the obligation of certain creditors to grant financing to the company.

In addition, the firm advised the bondholders in the negotiation and drafting of several collateral agreements entered into in order to comply with the provisions of the reorganization plan, including mortgage agreements on Mall Vivo Panorámico; joint and several liability obligations, bond issuance agreements, as well as Vivo’s other obligations under the reorganization plan.

The firm also counseled Vivo on its transformation into  a joint stock company, the cancellation of its registration in the Securities Registry of Chile’s Financial Market Commission; the spin-off of Vivo and its shareholding restructuring, resulting in a change of control of the company, which now being controlled by an investment fund managed by ASSET.

The firm’s role covered the entire process of negotiations and planning regarding a company in a financial distress.

The law firm’s team engaged in the services was made up of partners Octavio Bofill, Rodrigo Saffirio and Guillermo Fonseca, director Victoria Salazar, senior associates Feliciano Tomarelli and Gonzalo Barceló, and associates Paula Donoso, Joaquín Gregorio de las Heras and Sebastián Fernández.

Vivo SpA’s legal team was made up of chief legal counsel Fernando Moyano and assistant legal manager Rafael Egaña.

Vivo SpA was also counseled by law firm Carey, whose team comprised partners Salvador Valdés and Ricardo Reveco, with associates Francisco Torm, Matías Garcés, Fernanda Valdés, Nicolás Fosk and María Anguita.