Chile’s Inversiones Alsacia exchanges notes under prepackaged plan

By Toni Weeks and Caroline Salls

Pittsburgh, Dec. 17 – Inversiones Alsacia SA issued new 8% senior secured notes due 2018 on Wednesday, the same day that the company’s pre-packaged plan of reorganization took effect.

The plan was confirmed on Dec. 4.

According to a press release, the notes were issued along with a “catch-up” cash payment in an amount equal to the interest accruing from Oct. 1 through and excluding Dec. 17 on the aggregate of (i) the principal amount of the company’s existing 8% senior secured notes due 2018 and (ii) the accrued and unpaid interest thereon at a rate of 8% per annum through and including Sept. 30, 2014.

The catch-up payment will be paid to qualified holders of the existing notes that tendered their notes prior to Dec.11 and on two subsequent distribution dates to qualified holders that complete certain procedures, including submitting a letter of transmittal, prior to June 15, 2015.

Non-qualified holders will receive certain cash payments, including the catch-up payment.

The new notes have an initial maturity of Dec. 31, 2018, which may be extended if the company obtains extensions of its concessions through at least April 2021.

The plan was subject to solicitation of creditor votes and confirmation by the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Inversiones Alsacia expected to continue to operate its full schedule of services to the citizens of Santiago, provide employees with wages, health-care coverage, vacation days and similar benefits without interruption and pay suppliers for goods and services received throughout the company’s reorganization process.

No other creditors or suppliers have been, or should be, affected by the restructuring of the existing notes, the company said in a Dec. 4 news release.

The company said it remained current on all of its other obligations as of Dec. 4.

In addition, all interests were to be reinstated, according to the disclosure statement for the pre-packaged plan.

“Successful conclusion of our restructuring will put us in a better position to evaluate the replacement of over 60% of our fleet, which will have 10 years of service in 2015. If such replacement occurs, it will allow us to provide an improved service to the citizens of Santiago,” the company said in the release.

Santiago, Chile-based transportation company Inversiones Alsacia filed bankruptcy on Oct. 16. The Chapter 11 case number is 14-12896.

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