#Restructuring #Unigel #Bankruptcy #Brazil #São Paulo

Unigel Seeks Chapter 15 Recognition for Brazilian Restructuring

Unigel Participações S.A. has recently taken significant steps in its ongoing restructuring journey. On November 15, 2024, the company, along with its affiliates—Unigel Luxembourg S.A., Proquigel Química S.A., and Companhia Brasileira de Estireno—filed a petition in the United States Bankruptcy Court for the Southern District of New York. This petition is aimed at commencing proceedings under Chapter 15 of the U.S. Bankruptcy Code.

The core purpose of this Chapter 15 filing is to seek official recognition of the Unigel debtors' Brazilian extrajudicial reorganization (EJ) processes in the United States. In essence, this seeks to ensure that the restructuring plans approved in Brazil are upheld and given full effect within the U.S. legal framework, particularly concerning certain debt instruments that fall under New York state law.

There is a crucial hearing scheduled before the U.S. Bankruptcy Court that will review the recognition of these EJ proceedings and their corresponding plans. This filing is not merely procedural; it represents an important milestone in Unigel's efforts to stabilize its operations and improve its financial standing, a goal that the company firmly believes will benefit its stakeholders, including creditors.

Importantly, this Chapter 15 filing is designed to not interfere with the ongoing operations of Unigel or its affiliates. The company has assured its suppliers and employees that daily business activities will continue as usual, reinforcing its commitment to all parties involved.

For those looking to delve deeper, the complete details of the extrajudicial reorganization plans can be accessed on Unigel's official website. Additionally, the company has stated that certain creditors have rights to make treatment elections as per the EJ plans.

In an effort to be transparent with its stakeholders during this complex process, Unigel has engaged in confidential discussions under NDAs with various parties, including holders of claims included in the EJ plans. These discussions have facilitated the sharing of vital information pertaining to the reorganization, fostering a collaborative environment aimed at achieving the shared goal of financial recovery.

Unigel emphasizes its dedication to providing regular updates on developments related to this petition and the entirety of the restructuring process, ensuring that stakeholders remain informed at every step.

The company's CFO, Andre Luis da Costa Gaia, has indicated that the restructuring initiatives, driven by this Chapter 15 filing, aim to enhance Unigel's capital structure and address outstanding obligations. He stressed the heightened focus on benefiting the interests of all stakeholders involved and ensuring the company operates smoothly throughout this period.

As this situation evolves, stakeholders and interested parties are encouraged to stay informed through Unigel's website and official communications. Via these platforms, detailed information regarding treatment options for BRL and USD credits will be shared, alongside relevant election forms and further instructions.

In closing, Unigel's Chapter 15 petition signifies a strategic move toward preserving the company's viability in the competitive landscape. The management remains keen on demonstrating progress while navigating the complexities of restructuring and the legal frameworks that govern their operations both in Brazil and the United States.

It is evident that while challenges lie ahead, Unigel is poised to tackle them head-on, fostering a culture of resilience and transparency throughout this critical restructuring phase.