SANTIAGO, Chile, April 9, 2021 /PRNewswire/ — Automotores Gildemeister Chile («AG» or the «Company«) today announced that it has commenced solicitation of its previously announced pre-packaged chapter 11 plan of reorganization (the «Plan«), which seeks to deleverage the Company’s balance sheet by approximately $200 million while minimizing any impact on its day-to-day operations. The restructuring under the Plan will create a sustainable capital structure with less debt that will position the company for future success with brighter prospects and a greater ability to serve its customers for years to come.
AG previously entered into a restructuring support agreement (the «RSA«) with holders of approximately 72.5 percent of the principal amount outstanding of the company’s secured notes (collectively, the «Consenting Noteholders«), under which, subject to the terms and conditions set forth therein, they will support the Plan, which will implement the proposed restructuring.
Today the Company commenced solicitation of votes from holders of the Company’s 7.5% secured notes due 2025, 8.25% unsecured notes due 2021, 6.75% unsecured notes due 2023, 7.5% unsecured notes due 2021, and certain related party claims, to accept or reject the Plan. The Company established May 7, 2021 at 5 p.m. (New York time) as the deadline for the receipt of votes to accept or reject the Plan.
Pursuant to the Plan, the Company, along with its Uruguayan and Brazilian subsidiaries, intends to file voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the Southern District of New York. This filing is not expected to have any impact on customers, vendors or employees, and the Company will continue to operate in the ordinary course of business during the restructuring, including by continuing to pay employee wages and benefits and making payments to its customers, suppliers and other business partners.
Additional information about the solicitation process (including copies of the solicitation materials) is available at https://cases.primeclerk.com/AGBallots2021/Home-Index, by calling the Company’s claims agent, Prime Clerk, at +1 (877) 328-3687 (U.S. Toll Free) or +1 (347) 532-5859 (International), or by sending an email to email@example.com.
About Automotores Gildemeister SpA
Automotores Gildemeister is a vehicle importer and distributor with operations in Chile, Uruguay, Brazil, Peru and Costa Rica. Since 1986, the Company has been the sole distributor of Hyundai passenger and light commercial vehicles in Chile.
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SOURCE Automotores Gildemeister SpA