Article by Antonio Giglio, Renato Buranello and Kristian Olaf Olsen
DEALS AND TRANSACTIONS
Summary of Transaction
Demarest advised debt restructuring of Brazilian sugar and ethanol producers Zihuatanejo do Brasil Açúcar e Álcool S.A., ("Zihuatanejo"), S.A. Leão Irmãos Açúcar e Álcool ("Leão"), of Group Eduardo Queiroz Monteiro, involving Callao Partners, Ltd. ("Callao"), as Lender, Crecera Finance Management Company Llc. ("Crecera"), as Agent, Zihuatanejo Investments Ltd. ("Zihuatanejo Investments") and Brazil Ethanol Participações S.A. ("Brazil Ethanol"), as Intervening Parties and Saca S.A. Sociedade de Açúcar e Álcool ("Saca"), Kelbe Participações Ltda ("Kelbe") and Mr. Eduardo de Queiroz Monteiro, as Guarantors, amouting US$ 34 million.
January 17, 2012
Comments
The deal is part of a coordinated effort by Callao, through its agent Crecera to rearrange, in a suitable way, outstanding debts arising from agribusiness loans, notably to sugar and alcohol producers. A strong security package was structured in order to reinforce collateral, including two fiduciary liens over industrial and rural properties and CPR's (agribusiness bonds representing the obligation to deliver agricultural products, which can alternatively be liquidated in cash).
From the Borrowers' perspective the deal ensures a more feasible and realistic repayment schedule with a number of incentives (mainly interest-related) in case the Borrowers anticipate outstanding amounts.
All firms Involved
Demarest e Almeida Advogados
Piauhylino Monteiro Sociedade de Advogados
Lawyers acting in transaction
Antonio Giglio (Partner)
Renato Buranello (Partner)
Kristian Olaf Olsen (Associate)