Davis Polk partner and head of international restructuring Tim Graulich discussed the recent developments in Latin American bankruptcy cases and restructurings with Law.com International.

“It has been busy in Latin America, and I don’t think there’s any particular reason to think it will be less busy,” Tim noted.

Tim also discussed Credivalores’ exchange offer in connection with their chapter 11 prepackaged plan of reorganization. The prepackaged option allowed a smaller amount and number of bondholders to approve the debt restructuring. However, the ad hoc group of creditors argued that its votes against the plan were not properly registered due to errors by the financial institutions tabulating the ballots.

“There is no dispute that the creditors intended to vote no here,” Tim noted. “There’s this risk in the system that I don’t think bondholders even knew existed, that there could be these mistakes and nobody wants to own it,” Tim explained.

“Latin America Deal Digest: Summer of Restructurings,” Law.com International (July 25, 2024) (subscription required)

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