AXS LAW Group, a full-service boutique law firm created by entrepreneurs for entrepreneurs, advised Lupatech S.A., a major Brazilian manufacturer for the petroleum sector, in closing a cross border debt restructuring exchanging $48 million in notes for a combination of a lesser amount of notes and warrants to purchase common shares of the company that trade on Brazil’s BOVESPA stock exchange.
The note exchange was an important component of Lupatech’s Brazilian judicial recovery plan – the Brazilian equivalent of Chapter 11 – and was executed in the U.S. pursuant to Chapter 15 of the Bankruptcy Code, which allows foreign nationals to file for bankruptcy in the U.S. bankruptcy courts if they have assets, property, or business in multiple countries, including the United States. Chapter 15 requires close coordination between the U.S. and Brazilian bankruptcy courts. Lupatech was granted Chapter 15 relief by the Bankruptcy Court of the Southern District of New York on August 13, 2021 after several attempts due to creditor disputes as well as delays due to Covid 19.
The closing of the note exchange represents the final step in Lupatech’s overall restructuring and return to profitability. According to AXS LAW Group partner Allen Moreland, who spearheaded the transaction on behalf of Lupatech, “The note exchange represents a major milestone on Lupatech’s road to recovery and will allow it to formally exit its court supervised debt restructuring. As a result of the restructuring, Lupatech has become a significantly more efficient and financially viable business operation.”
Mr. Moreland is a highly accomplished lawyer with over 30 years of law experience advising on highly sophisticated, cross-border Latin American and Caribbean financing and corporate transactions and has over 10 years of experience practicing law in Brazil where he is registered with the Order of Attorneys of Brazil (OAB)
About AXS LAW Group
AXS LAW Group is a full-service boutique law firm created by entrepreneurs for entrepreneurs. Based in the Wynwood arts district of Miami, AXS LAW has made a name for itself by disrupting traditional legal models through a creative and fresh approach to law tailored to today’s modern clientele. The legal experts behind AXS LAW provide personalized client service in the areas of corporate and transactional, litigation and dispute resolution, real estate and hospitality law. In addition, AXS is committed to giving back to the community through its philanthropic arms AXS Cares and AXS Art which supports the local South Florida arts community through programs, events and legal representation. For more information, please visit www.axslawgroup.com.
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