On August 25, 2011, Industrias Unidas, S.A. de C.V. (“IUSA”) received a confirmation order from the U.S. Bankruptcy Court in Delaware that marked the successful conclusion of the U.S. portion of its multinational debt restructuring, scheduled to close in September. IUSA is one of Mexico’s largest diversified industrial groups, manufacturing copper-based and electrical products for the housing and electrical power markets primarily in the U.S and Mexico.
On December 8, 2009, Cambridge-Lee Holdings, Inc. and Tubo de Pastejé, S.A. de C.V., two subsidiaries of IUSA, each filed voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court in connection with a pledge of the CLH stock by Tubo to holders of the 11.5% senior notes due 2016 that had been granted when those notes were issued. The chapter 11 cases served to protect IUSA’s several U.S. companies from its creditors while IUSA continued with its planned restructuring.
IUSA entered into a restructuring agreement dated as of July 12, 2011, which provided for the terms of a plan of reorganization in the chapter 11 cases and a consensual exchange involving bondholders, copper lenders and commercial paper holders, which together represent substantially all of IUSA’s unsecured debt. Following the issuance of the Bankruptcy Court’s confirmation order on August 25, IUSA will now be able to proceed with the U.S. Plan and the other components of its complex cross-border restructuring. IUSA currently expects to issue new Series A or Series B notes in exchange for its outstanding unsecured debt in September.
Dewey & LeBoeuf LLP lawyers have advised IUSA throughout the restructuring process. The lawyers involved included partners Joy Gallup, Michael Fitzgerald and Philip Abelson and associates Lauren Cohen, Kevin Felz, Stephanie Swanson, Andrés Osornio and Ehud Barak. IUSA’s general counsel is Carlos Mochón.
According to Dewey & LeBoeuf partner Joy Gallup, “Even though the current restructuring package has taken time to negotiate, the company believes it has reached the best possible result for both IUSA and IUSA’s creditors.”
Following the issuance of new notes in September, “the company will be poised to take advantage of growth opportunities and implement its business plan in a flexible manner,” she continued.
