Gentle is about to current its judicial restoration plan, proposing six options to collectors that would scale back the corporate’s debt by about R$6 billion.
Gentle requested about his RJ at holdingGentle SA, which was prolonged to incorporate its two working firms: Gentle SESA, a distributor of Rio which has R$9 billion in debt; and Gentle Energia, an vitality generator that has a debt of R$1.8 billion.
In CEO Octavio Pereira-López’s plan, the corporate has designed choices that dialogue with every creditor profile – divided into two giant blocks.
The primary block, which incorporates 4 of the six options, ensures that the total quantity can be paid – however with an extension of the debt. The second states {that a} Hair minimize starting from 20% to 60%
The primary of the substitutions is designed for small collectors, who’ve as much as R$10,000 in firm bonds.
For these bondholders – about 25,000 out of a complete of 40,000 – Gentle proposes paying your entire quantity in money, which might symbolize an expense of about R$150 million for the corporate.
The second possibility is to transform the debt into gentle shares at a value but to be decided. The corporate has capped that possibility at as much as R$3 billion – which, at display value, would generate 40% dilution for current shareholders.
One other different—made for what Gentle calls “Gentle Energia’s co-creditors” (generator)—is to take out full debt with a brand new bond subject maturing in 5 years, extending the prevailing debt by two years.
Due to this fact, these collectors are required to help the corporate’s plan to separate Gentle Energia from Gentle SA, and switch a part of the generator funds to holding (500 million reais out of a complete of reais 800 million).
As for what it referred to as “Gentle SESA Companions Collectors,” it was proposed that for each R$1.2 that these collectors spend money on the corporate’s FIDC (Extra Chapter Credit score with Assured Receivables), R$1 of your entire credit score can be obtained via the issuance of a brand new bond with 15-year maturities. yr.
If the duty on this selection reaches the utmost debt of R$1.25 billion, this selection would elevate roughly R$1.5 billion.
Within the second group, Gentle steered two options. The primary is to obtain the quantity in money, however with Hair minimize To be decided by reverse public sale, with a minimal firm required low cost of 60%.
This feature can be funded from funds raised by FIDC and can be restricted to R$3 billion in debt, requiring R$1.2 billion from FIDC. (The rest of the quantity raised by FIDC can be used for the distributor’s working capital.)
The second different is to get the quantity at a 20% low cost, however in installments over 15 years and corrected by the IPCA.
RJ’s plan additionally features a capitalization of R$700 million to be supplied by Gentle SA in Gentle SESA. (a holding Already a field Underneath the plan, it is going to obtain a further R500 million from Gentle Energia).
Gentle has greater than 40,000 bondholders, 250 funding funds and 10 monetary establishments as collectors. For the plan to be authorized, 50% should vote for it plus 1% of the entire debt.
Nevertheless, the plan should be topic to modifications, on condition that Gentle will nonetheless be speaking with collectors to obtain it remark.
Of the R$10.8 billion in debt, about R$3 billion Bond holdersrepresented by Moelis and Beneiro Neto who’ve a extra constructive angle in the direction of RJ.
Nevertheless, there may be one other R$1 billion of collectors the corporate has referred to as “bellicose” – the funds which have been most vocal towards RJ – which is represented by Lefosse Advogados.
Peter Arbex
