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)