Brazil's Imcopa gets consents needed to amend 10 3/8% notes, will pursue reorganization plan

By Angela McDaniels

Tacoma, Wash., Oct. 26 - Imcopa Importacao, Exportacao Industria e Oleos SA and Imcopa International Cayman Ltd. successfully completed their consent solicitation for Imcopa International's $100 million 10 3/8% notes originally due in 2009, according to a company news release.

The companies were seeking to amend the terms and conditions of the notes, including those concerning the timing and amounts of principal and interest payments, and to conform them to the terms of an extrajudicial reorganization plan that Imcopa will seek to have confirmed under Brazilian law.

Imcopa said it will file as soon as possible a petition with the Brazilian court to confirm the reorganization plan.

The company expects to obtain judgment from the Brazilian court within four to nine months after filing.

On Sept. 15, Imcopa finalized the terms of the reorganization plan with bank creditors that hold a majority of the approximately $444 million amount outstanding under its credit facilities.

In order to obtain confirmation, the reorganization plan must be approved by creditors holding three-fifths of each affected class of Imcopa's debt. The bank creditors hold enough debt to represent sufficient support for the plan from Imcopa's secured creditors. Consents were solicited from the noteholders to achieve the necessary support for the reorganization plan from Imcopa's unsecured creditors.

Noteholders voted on the proposed changes at a meeting on Oct. 26. The deadline for submitting voting instructions was 11 a.m. ET on Oct. 22.

Holders of approximately 87.1% of the notes voted to make the proposed changes. This represented approximately 98.3% of the votes cast.

In order for the extraordinary resolution to pass, noteholders representing 75% of the principal amount of notes outstanding had to be present at the meeting and at least 75% of the votes cast had to be in favor of the extraordinary resolution.

Noteholders who consented will receive a consent payment of $25.94 per $1,000 principal amount of notes. The payment will be made by Nov. 4.

The consent solicitation began Oct. 4.

The solicitation agent was HSBC Securities (USA) Inc. (888 HSBC-4LM, 212 525-5552, +44 20 7991 5874 or liability.management@hsbcib.com). The information agent was Lucid Issuer Services Ltd. (+44 207 704 0880 or imcopa@lucid-is.com).

Imcopa makes soybean products and is based in Araucaria, Brazil.

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