Emerging Markets Restructurings

Dechert’s financial restructuring lawyers are experienced in restructurings and other distressed company and asset matters in emerging markets. Our work includes bankruptcy and insolvency proceedings and out-of-court restructurings, financings and multinational debtor/creditor litigation involving parties and legal venues in Mexico, Brazil, Chile, Puerto Rico, Argentina, Latvia, Ukraine and the Czech Republic, among other countries.

The practice is especially active in restructurings and distressed asset transactions in Latin America. In recent years, Latin America experienced a wave of debt restructurings, and Dechert played key roles in a number of them, including in the cross-border restructurings of Oi S.A. of Brazil and Vitro S.A.B. de C.V. of Mexico.

A longstanding Latin America practice

Many global law firms advising on cross-border matters that involve a Latin American party encounter difficulties because of complicated regulations developed long before the internationalization of the capital markets. For more than three decades, though, Dechert has represented clients in all manner of transactions in Latin America and understands the regulatory structures in place as well as dispute resolution practices throughout the region. A number of our lawyers are multicultural, multilingual and multijurisdictional. 

Assessing economic and other risk factors

Countries in the emerging markets have massive growth potential and often provide attractive opportunities for buyers and investors of distressed assets. Yet in such markets, there are risks. Dechert understands that clients’ matters may involve a market where factors like evolving political policies, reform efforts around regulations, possible market corrections and even government instability may affect how they unfold. Our lawyers examine every representation against any risk factors in the relevant market and advise clients how they may affect strategy, tactics and the matter’s outcome. 

  • Ad Hoc Group in connection with a potential restructuring of Samarco Mineração S.A., a Brazil-based mining company, and its indebtedness. 
  • Ad Hoc Noteholders Group in connection with the US$19 billion restructuring (Brazil’s largest-ever bankruptcy filing) of Oi S.A., Brazil’s leading telecommunications service provider formerly known as Brasil Telecom S.A.
  • Peaje Investments LLC, a special purpose vehicle managed by a prominent hedge fund and the largest holder of “unwrapped” special revenue bonds issued by the Puerto Rico Highways & Transportation Authority (PRHTA), in connection with all aspects of the Commonwealth of Puerto Rico’s debt restructuring.
  • Aurelius Capital Management, LP, and Alden Global Capital LLC, the largest noteholders of OAS, S.A., one of the largest Brazilian engineering and construction companies, and its affiliates, in connection with a Chapter 15 case in the Southern District of New York, currently in insolvency proceedings in Brazil and the British Virgin Islands.
  • Ad Hoc Noteholders Group in connection with the cross-border restructuring of a Chilean-based chain of automobile dealerships.
  • Ad Hoc Noteholders Group in the highly contested cross-border restructuring of US$1.6 billion in defaulted notes issued by Vitro S.A.B. de C.V., Mexico's largest glass manufacturer. Dechert was counsel to the noteholders in connection with Vitro’s concurso filing in Mexico, related cases in Dallas, Texas, and litigation in the New York Supreme Court. The Financial Times in 2013 chose Dechert as one of the “top U.S. innovative law firms” for its “standout” work as lead counsel for the noteholders group in this matter.
  • Ad Hoc Noteholders Group in connection with the cross-border restructuring of Chilean bus operator Inversiones Alsacia, S.A., as well as threatened litigation in Chile and the U.S., and an investor-state arbitration claim against Chile.